The 2001 tax act (EGTRRA) together with some recent IRS rulings have greatly increased the contributions and deductions into retirement plans similarly to the old rules in the 1980's. For example, under the new rules an age 52 single owner/single employee of a company could contribute and deduct approximately $150,000/yr into a defined benefit plan; age 60 approximately $200,000. Business/professional practice owners with employees can take advantage of new rules to provide safe harbor contributions for employees and still contribute large amounts for themselves.

Our firm is excited about the new retirement rules because retirement planning fits quite well into our tax and asset protections specialties as retirement plans, in addition to being deductible, are generally protected against judgment creditors under ERISA or state law exemptions.