Defined Benefit Plans for Farmers

 Farmers with storable crops like grain can strategically sell their inventory over several years to smooth out income. This predictable income stream provides the financial confidence to establish and consistently fund a Defined Benefit plan for 3-5 years, unlocking substantial tax savings and building a secure retirement. Knowing their income trajectory allows for confident, consistent contributions to the plan, maximizing its benefits over time. This proactive approach to income management makes Defined Benefit plans a particularly powerful tool for these agricultural businesses. 

 This type of plan offers a significant annual tax deduction, directly reducing their tax liability. Unlike investing in more machinery to shelter income, which involves taking on debt and increasing operational complexity, these deductions provide a straightforward and effective way to manage taxes while simultaneously building long-term retirement savings. It's a powerful strategy for reducing their tax burden without the need for additional capital expenditures or borrowing. 

 As retirement approaches, a well-structured Defined Benefit plan offers older farmers a strategic pathway to convert their hard-earned business equity into retirement income. A key advantage is that the plan's assets enjoy tax-deferred growth, meaning they accumulate value without being taxed until they are withdrawn in retirement, providing substantial long-term tax benefits. This allows for a more seamless and tax-smart transition of business value into a secure retirement income stream. 

 At Bridgeway Wealth Management, we believe in a collaborative approach to building your financial future. As your dedicated financial advisor, we work closely with experienced professionals, including your accountant, and a trusted Third Party Administrator (TPA), who expertly handles the initial plan documentation. Our integrated team provides ongoing support and guidance through every stage – from establishing and maintaining your plan to its successful completion. You can count on our collective expertise at any point along the way.