Cash Balance plan

​This letter is part of a series on cash balance retirement plans, one of the best strategies to help high-earning Americans reduce taxes and accelerate their retirement savings. Since the loosening of IRS restrictions in recent years, cash balance plans have become extremely popular and only continue to grow, commanding over $1 trillion in assets. Adding a cash balance plan on top of a 401(k) profit-sharing plan can generate hundreds of thousands of dollars in annual tax savings. We’ve come a long way with this series, from learning about the basic structures of cash balance plans to exploring the history behind their popularity. Now, here at the end, let’s stop to take a look at some actual, concrete examples of how business owners can benefit from adding a cash balance plan. We hope that you have found plenty to pique your interest in this series and that you fall into one of the groups of people most likely to benefit from adding a cash balance plan. We are happy to do a free, zero obligation case design for you and your company, providing you with an in-depth analysis of the money that you could be saving. See the end of this letter for details. Here’s a look at a few sample cases: Sample Company 1 - One owner, two employees Sample Company 2 - One owner, ten employees Sample Company 3 – Four owners, three employees After looking over these numbers, ask yourself if any of the following statements apply to you: • I am paying $20k or more in taxes, and I expect to pay as much again next year. • I expect to sell highly appreciated assets within the next five years. • I currently make gift contributions to a trust and expect to continue doing so. • I rely on a CPA for tax prep, and my CPA has not gotten together with a tax attorney, a certified financial planner, or a chartered financial consultant to plan detailed tax reduction strategies for the future. • I have a tax prep consultant and not a tax planning team. If you fall into one of these categories, then it is extremely likely that you can reap huge tax benefits from adding a cash balance plan. Don’t assume that your CPA or tax prep specialist is saving you every possible dollar. CPAs are fantastic for tax prep, but they don’t usually have much experience with tax planning. Think of it as the difference between an architect and an engineer. The engineer brings the architect’s plans to fruition, but the architect is responsible for the original design. In the same way, a CPA can apply relevant tax code when filing returns, but usually doesn’t create a comprehensive plan to reduce taxes across the board. The U.S. tax code is over 5 million words long, and it is crucially important to have a team that thoroughly understands and specializes in that code in order to significantly lower tax payments. Without this, you don’t have a tax plan; you only have tax prep, and by then it’s too late to take advantage of many valuable top-line deductions. We’re so confident in our team’s ability to reduce your tax burden that we offer a “2x savings promise”. This means that you will never pay us more than half of what we save you in taxes. If we can’t save you money, we don’t get paid. It’s as simple as that, and it gives us a great incentive to find you every available deduction. Again, our initial assessments and case design are absolutely free. If we can’t save you anything, we work for nothing. By filling out the enclosed form(s)—just the one for individuals, or both forms for businesses—and returning it/them to our office, you will take the first steps towards enormous tax savings, potentially hundreds of thousands of dollars per year. If you’re still feeling uncertain or would like more information first, please feel free to contact us toll-free at (800)-528-0377 Remember, cash balance plans remain one of the largest top-line deductions ever approved by the IRS. If the numbers are right, this is a benefit that you should absolutely take advantage of.