Life Insurance vs SEP IRA and 401k for Small Business Owners

As a small business owner generating millions of dollars in top-line revenue, traditional financial advice tells you to dump excess profit into qualified retirement plans like a SEP IRA or a traditional 401k. Traditional financial planners sell these plans on a single metric: immediate upfront tax deductions. When your operating profits expand, taking a dollar-for-dollar tax write-off seems like an obvious choice to lower your annual tax bill. Qualified retirement plans contain rigid structural drawbacks that actively penalize profitable, growing business owners.