By now you’ve seen the big headlines in financial news publications touting Cash Balance and Defined Benefit Pension Plans as the new secret weapon to powerful tax savings for wealthy business owners and professionals. The eye-popping facts grab your attention: pension plans that can result in tax deferrals of $100k-$200k or more. Who wouldn’t run, not walk to their Financial Advisor to immediately implement one for the 2018 tax year?

But I am frankly surprised that financial professionals are only now having an epiphany about how these tried and true pension plans can be a solid solution for rich entrepreneurs and professionals. They shouldn’t be a knee-jerk reaction to the IRS 199A rule and the realization that the new lackluster tax reductions did very little for affluent clients. Clearly, this is what makes these deductible plans timely but they are certainly NOT the new flavor of the month… they have been a buffer against taxes for decades, long before any of this consternation. The real question is why you haven’t put in a Cash Balance Defined Benefit plan by now? You could have banked hundreds of thousands of dollars in benefits. Sure, in some cases the 199A rules will boost benefits, or a pension may help you utilize 199A to your advantage, but the pure Pension Plan tax savings are powerful on their own.

Additionally, a long-term plan should not rely on a current tax edge but work positively with or without it, in case the new rules are repealed.

By the way, don’t be confused by the notion that businesses and professionals can restructure their practices in an attempt to qualify for section 199A. The government is already scrutinizing that, and none of these manipulations will improve your Pension’s leverage or non-discrimination rules. The smart move is to take action now using the momentum and new spin on pension plans, and consider the value of a plan tailored specifically for your goals that will last beyond the news headlines and stand the test of time.

Our custom plan designs and administration, even for small businesses, can be implemented quickly, and most importantly, in time for tax year 2018… and at much lower costs than you expect. You can use your own Investment Advisors. Contact our firm for more details. We have specialized in these plans for decades, long before they were in vogue. 800.717.4723, [email protected]

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About Us

We are pioneers in retirement planning, featuring tax-advantaged defined benefit pension plans as exit strategies for high net worth clients. We partner with top industry Advisers to bring their clients preferred solutions to achieve large income tax deductions.


Coral Gables, FL

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Phone: 1-800-717-4723

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