Client of the Week

This Week

Looking Good!

Americans spent more than $12 billion on cosmetic procedures in 2013 according to the American Society for Aesthetic Plastic Surgery. So, it’s no wonder that the owners of clinics performing such procedures are making sizable incomes and are looking for new tax deductions.  An RIA in Texas offered just such a solution to a married couple who own a spa that is thriving.  In past years, they paid themselves very low W-2 income from their S-Corp, only $75,000 total, but had over $500,000 in K-1 distributions. As a result, though they are in their mid-fifties, they have no retirement savings.  For 2017, by bumping up their combined W-2 to $175,000, they will contribute $150,000 to a combined Cash Balance + Safe Harbor 401(k) Profit Sharing retirement program for themselves, and only $18,200 total for their 5 employees.  How beautiful is that?
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