PRIMARY BENEFIT: MITIGATE RISK MORE EFFICIENTLY
Traditional insurers cover a large portion of the risks business owners face. However, as many business owners learned during the COVID-19 pandemic, their policies often limited or excluded coverage. There are also many losses that insurers will not cover. An 831(b) Plan mitigates the risks business owners take each day, whether they realize it or not.
SECONDARY BENEFIT: TAX-DEFERRED PLAN CONTRIBUTIONS
An 831(b) Plan allows a business owner to defer income to address tomorrow’s risks. Without an 831(b) Plan, business owners are self-insuring risks, such as a business interruption, with after-tax money from cash flow. With an 831(b) Plan, when catastrophe strikes, business owners can utilize these tax deferred reserves to weather the storm.