Principal S Owner PlusSM
How it Works
Owner Advantages
- Provides funding for needs such as retirement, disability and death protection
- Provides flexibility to choose either compensation or dividends as the funding source
- Depending on the funding vehicle chosen, can offer the opportunity for tax diversification planning
- Provides certain protections from creditors in some situations
Owner Considerations
- Depending on the owner's tax situation, in some cases it is an issue whether the owner contributions are after tax.
- If there is more than one owner and a dividend design is used, the distributions need to be in proportion to ownership.
- Depending on the financial asset selected, it may be subject to the owner's general creditors.
- Depending on the financial asset selected, annual taxation of earnings may apply.
This publication is intended to provide accurate and authoritative information in regard to the subject matter covered. The accuracy of the information is not guaranteed and is provided with the understanding that The Principal is not rendering legal, accounting, or tax advice. While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is not a marketing opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.
Approval #8931112007
