Tax-Planning

Your #1 guaranteed creditor EVERY year is the IRS. Therefore, when implementing tax-favorable planning, you are doing a form of asset protection. It is our goal to educate people on “all” of the available tools so informed decisions can be made about which tools will work best can be made.

The list below is somewhat daunting. The key question for people who can contribute their own money to a tax-deferred IRA or retirement plan is whether it makes sense to do so. Or will it make more sense to fund Retirement Life™ outside of a tax-deferred plan to create a tax-free retirement income? To learn more about Retirement Life™, click here.

If you are a business owner, you have many choices and the key is working with a firm who can help you choose the best option and create the best plan design to meet your goals.

Getting Help—if you would like help determining which plan below will best fit your needs, contact our office to set up an appointment.

IRAs—these are simple tools that most people can fund but only up to a small funding amount each year. Click here to learn more.
401(k) Plans—these are employee-sponsored plans where employees can make voluntary payroll deductions in a tax-deferred manner. Click here to learn more.
Roth IRAs and 401(k) Plans—these are after-tax versions of the deductible kind where the money is allowed to grow-tax-free and come out tax-free.
Profit-Sharing Plans (PSPs)—these are plans employers can choose to put in place where the employer makes the contribution. There are three different kinds of PSPs employers will use depending on their goals. Click here to learn more.
Defined Benefit Plans— these are not only funded by employers for their employees, but the employer is guaranteeing a certain retirement income for vested employees at retirement. Click here to learn more.
412(e)3 Defined Benefit Plans—these plans are fully insured plans using annuities and/or life insurance. The deductions are typically larger than traditional DB Plans, but they are even less flexible. Click here to learn more.
Cash Balance Plans—these are a type of defined benefit plan with more flexibility than defined benefits. Click here to learn more.
401(h) Plans—this is the only “tax-free” qualified retirement plan. Money goes in tax-deductible and money can come out tax-free. 401(h) plans are a type of defined benefit plan. Click here to learn more.

There are other tools not listed here that may be of help to affluent clients; those tools being a captive insurance company or some form of charitable structure. If you are a business owner who can take deductions of more than $500,000 a year, contact our office to discuss these other options.

Capital Gains Taxes

In addition to annual income taxes, capital gains taxes (short- and long-term) also need to be dealt with. We deal with several tools to mitigate or even eliminate taxes on the gains of certain investments. Any asset protection plan should strive to minimize all taxes when allowable and appropriate.