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Planning
A poorly designed retirement plan can potentially cost you hundreds of thousands in unnecessary taxes over the course of your career and millions of dollars in lost savings at retirement. Our pension professionals, actuarial resources and access to legal counsel helps to create and manage IRS-approved pension plans that allow pre-tax contributions of up to $200,000 or more annually. Check out the following example of a well-designed retirement plan.
Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. Federal tax advice contained in this communication, unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any matters addressed herein.
Loans and withdrawals from an insurance policy may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.
A 50-year-old who has earned a minimum of $245,000 annually for three years can contribute $222,463 in pre-tax income to a 401K/Profit Sharing/Defined Benefit plan. Compare that to a standalone SEP IRA or 401k/Profit Sharing Plan ($54,500 using catch-up contributions). In this scenario, the "wrong" plan exposes more than $168,000 to unnecessary income taxes, when that amount could be contributed and compounded tax-deferred toward your retirement.
*This is a hypothetical illustration. Your results will vary.And, while a 401k, profit sharing or defined benefit plan can be used as powerful tools to help you offset substantial income taxes today, you should also consider the implications of deferring that burden onto your retirement distributions. If you are concerned about rising tax rates in the future, we can help you explore group benefit programs that provide partially deductible contributions now, and then offer tax-free growth potential and tax-free distributions during retirement.
Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. Federal tax advice contained in this communication, unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any matters addressed herein.
Loans and withdrawals from an insurance policy may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.