Tax Minimization
Any amount you don’t have to pay to the IRS means more money you can put toward saving and investing for your future. We offer tax planning services to reduce Federal income tax, capital gain and estate tax.
Top Tax Savings for 2023-2024
The Secure Act 2.0 has extended the deadline for businesses to establish a tax qualified retirement plan to the tax-filing due date including extensions. If you haven’t filed for 2023 as yet, you may still implement a plan for 2023 as late as September 15, 2024 retroactively. Furthermore, the Secure Act 2.0 now permits an employer to replace a Simple Plan mid year with a Safe Harbor 401k, Defined Benefit or Cash Balance Plan. Prior to the Secure Act 2.0, employers who had adopted a Simple Plan were not permitted to change to a Defined Benefit Plan mid-year and thus were “squeezed out” of a larger contribution option for a retirement plan and, unfortunately, this resulted in more taxes being owed to Uncle Sam.
The combination and strategy of the 401k and a Defined Benefit Plan Maximizes Tax-Savings with the Largest IRS Approved Tax-Deduction and thereby increases wealth accumulation and retirement income.
Here are 9 Reasons Why High Income* Business Owners and Professionals should have a combination “401k” and a Defined Benefit Plan.
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- The Defined Benefit Plan offers the largest tax deduction allowed by the IRS and Department of Labor (DOL) to reduce current, future and past 2023 and 2024 Income tax liability. Deductions can be significant and permanently be as high as $450,000+ a year depending upon your salary, age, earnings and years to retirement.
- Assets within the Defined Benefit Plan are protected from lawsuits and the claims of creditors and litigants including: professional liability, spouses, and environmental liability.
- Investment money within the Defined Benefit Plan accumulates and compounds income tax-free.
- A Defined Benefit Plan can provide both a participant employee and spouse a guaranteed income for life.
- A Medical Expense Reimbursement provision can be included to cover post retirement hospitalization and other medical expenses. (IRC 401(h))
- A Defined Benefit Plan can provide pre and post-retirement death benefits. [Source: IRS section 401(a)(4)]
- A Defined Benefit Plan can provide the employer maximum control over employee costs because accrued benefits are not paid out when an employee terminates prior to retirement and employee vesting can be staggered over six (6) years.
- A Defined Benefit Plan can reduce future contribution costs due to employee turnover as the terminated employees non-vested retained balances can be used to offset future employee costs.
- Our Defined Benefit Plan meets all ERISA requirements and is DOL compliant with actuarial certifications.
If you would like to know how a combination 401k and or a Defined Benefit Plan can help reduce taxes, accumulate more money for retirement and preserve wealth contact us today for an initial complimentary consultation.