Can your business afford your retirement?

Your "income replacement value" is what you need the business to be worth to maintain your current standard of living after you leave the business.

This number is vital to any business owner looking to plan financially for life after the business. The difference between your income replacement value and the value you believe you could sell the business for today is your retirement income gap.

The information provided is not written or intended as specific tax or legal advice. MassMutual^®, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

MassMutual does not provide qualified business valuations. For a qualified or certified business valuation, consult a properly credentialed appraiser.

MM202705-309236

Benefits derived by the owner from the business

Next, lets determine how much personal value you receive from the business in the form of compensation and other benefits. (Use business tax returns Form 1120 for C Corp. or 1120S for S Corp. as appropriate.)

Salary (Form 1120: pg. 1, line 12,13 & Form 1120S: pg.1, line 7)

Pension, profit sharing, etc. (Form 1120: pg. 1, line 23 & Form 1120S: pg. 1, line 17):

Employee benefit programs (Form 1120: pg. 1, line 24 Form 1120S: pg. 1, line 18):

Company paid car, travel, meals, etc.:

Rent paid to owner’s real estate entity (Form 1120: pg. 1, line 16 & Form 1120S: pg. 1, line 11):

Other company paid benefits not listed above (stock options, etc.):

Total contributions from business to owner ($0.00)

The information provided is not written or intended as specific tax or legal advice. MassMutual^®, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

MassMutual does not provide qualified business valuations. For a qualified or certified business valuation, consult a properly credentialed appraiser.

MM202705-309236

Your Income Replacement Value is:

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The information provided is not written or intended as specific tax or legal advice. MassMutual^®, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

MassMutual does not provide qualified business valuations. For a qualified or certified business valuation, consult a properly credentialed appraiser.

MM202705-309236