The $69,000 Ceiling: How Business Owners Generate 1.7X More Tax-Free Income

Self-employed or business owner? Discover why maxing your SEP IRA at $69K might be costing you millions in retirement income.

⚡ See YOUR Numbers in the Calculator

📹 Watch: How IUL Protects Your Wealth & Generates Tax-Free Income

Discover how Maximum Funded IUL eliminates market losses, bypasses contribution limits, and delivers lifetime tax-free retirement income

Key highlights: Zero market loss guarantee • No contribution limits • Tax-free withdrawals • $200K+ annual tax-free income example

Calculate YOUR Retirement Income: SEP IRA vs IUL

See the exact difference for your situation

🔄 Apples-to-Apples Comparison

We're comparing the SAME monthly contribution: SEP IRA vs IUL

Your $2,000/month goes into each strategy separately - then we show you which one gives you better retirement income.

💡 Note: While this example uses $2,000/month, you can contribute up to $69,000/year to a SEP IRA, and there's no limit on IUL contributions - fund $100K, $200K, even $500K+ per year if desired!

Your age today
$2,000/month (Can go up to $69K/year max)
When you want to retire

🛡️ Maximum Funded IUL

Unlimited contributions + tax-free income

Annual Contribution Limit

No Limit
Fund $100K, $250K, $500K+ per year
  • ✓ After-tax contributions
  • ✓ Tax-FREE retirement distributions
  • ✓ 0% floor protection
  • ✓ Includes life insurance + living benefits

📊 SEP IRA

Tax-deductible self-employed retirement plan

Annual Contribution Limit (2024)

$69,000
Or 25% of compensation, whichever is less
  • ✓ Pre-tax contributions (tax deduction)
  • ✓ Fully TAXABLE retirement distributions
  • ✓ Full market exposure (up & down)
  • ✓ No life insurance included

Side-by-Side Feature Comparison

Features most important to business owners and self-employed professionals

Feature Maximum Funded IUL SEP IRA
Contribution Type After-tax (no deduction) Pre-tax (tax deductible)
Annual Contribution Limit No Limit $69,000 (2024)
Employee Contribution Requirement None - Personal policy only Must contribute same % to ALL eligible employees ⚠️
Immediate Tax Benefit None Full tax deduction
Retirement Distribution Taxation 100% Tax-Free Ordinary income tax
Market Downside Protection 0% Floor None - Full exposure
Access Before Age 59½ Any Age (no penalty) 10% penalty + taxes
Required Minimum Distributions None Required at age 73
Death Benefit Tax-free life insurance benefit Account balance (taxable to heirs)
Living Benefits (Critical/Chronic Illness) Included None
Use as Business Emergency Fund Yes (policy loans) No (10% penalty)
Best For High-profit businesses wanting unlimited tax-free income Those wanting immediate tax deduction
⚠️

Critical Point for Business Owners with Employees

With a SEP IRA, if you contribute for yourself, you MUST contribute the exact same percentage to ALL eligible employees. This means:

Real Cost Example:
  • You want to contribute $69,000 (max) for yourself
  • You have 5 eligible employees earning $50,000 each
  • Your contribution rate: $69,000 ÷ your compensation = let's say 25%
  • You MUST contribute 25% × $50,000 × 5 employees = $62,500 for employees!
  • Total cost: $69,000 (you) + $62,500 (employees) = $131,500
✅ IUL Solution:

An IUL is a personal life insurance policy with no employee contribution requirements. You can fund unlimited amounts for yourself without being forced to contribute a penny for employees. Save tens of thousands per year!

Real Example: 35-Year-Old Business Owner

Contributing $2,000/month ($24,000/year), 30-year time horizon to retirement at 65

SEP IRA Strategy

Annual Contribution
$24,000/year
($2,000/month)
Tax Savings (25% bracket)
$6,000/year
Total Contributed (30 years)
$720,000
Account Value at 65 (7% avg)
$2,267,000

Retirement Income:

$113,000/year
Ages 65-85 (20 years)
After 30% Tax:
$79,000/year
Fully taxable as ordinary income
Death Benefit:
Account balance only
Taxable to beneficiaries

Maximum Funded IUL Strategy

Annual Contribution
$24,000/year
($2,000/month - same as SEP!)
Tax Savings
$0/year
(After-tax contributions)
Total Contributed (30 years)
$720,000
Cash Value at 65
$2,207,000

Retirement Income:

$138,000/year
Ages 65-85 (20 years)
After 0% Tax:
$138,000/year
100% tax-free via policy loans
Death Benefit:
$3,000,000+
Tax-free life insurance from day one

The IUL Advantage:

1.7X
More Annual Tax-Free Income
$138K vs $79K after-tax
$3M
Tax-Free Death Benefit
SEP IRA provides none
$1.2M+
More Total Lifetime Income
Over 20-year retirement

💡 Why IUL is Best for Your Retirement

The Tax-Free Retirement Formula

TAX-FREE INCOME
↓
MORE MONEY IN YOUR POCKET
↓
BETTER RETIREMENT

It's Really This Simple:

Every dollar you take from a SEP IRA gets taxed. At a 25% tax rate, that $140,000 turns into just $105,000 in your pocket.

With an IUL, you keep ALL $350,000. Tax-free means more money.

Over 20 years of retirement, that's $5 million+ more in your pocket to enjoy the retirement you've earned.

Plus, You Get:

✓ No Contribution Limits – Fund as much as you want
✓ Market Growth Protection – Gains locked in, losses protected
✓ Multi-Million Dollar Death Benefit – Tax-free to your family
✓ No Required Withdrawals – Take money when YOU want

Bottom Line: Less taxes in retirement = More money in your pocket = Better retirement lifestyle

See Your Business Owner IUL Strategy

Get a personalized illustration showing how much tax-free retirement income YOUR business profits could generate with a Maximum Funded IUL.

Get My Free Business Owner Illustration

🔒 See exactly how IUL delivers maximum tax-free retirement income for business owners