Boost Referrals to High-Income Earners

12th Sep 2018


A New Value Add for Your Favorite CPA

The Tax Cut and Job Act (TCJA) created a new tax deduction for owners of pass-through entities (Sole Proprietorships, Partnerships, S-corps and LLCs taxed as sole proprietors). These owners can take potentially up to 20% deduction off their Qualified Business Income (QBI). But the rules are complex and at first blush, it appears that owners of specified service companies, such as financial advisors, doctors, consultants and entertainers among others, who are earning high income are excluded and will miss out on the deduction.

With your help, and some basic understanding of how high contribution retirement plans – defined benefit and cash balance plans – can be used, you and your CPA network can save clients tens of thousands of dollars in tax liability and add $100,000+ to their retirement savings each year.


A Perfect Opportunity to Partner with CPAs


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Taxpayers can expect big changes to their 2018 tax returns. While tax rates have come down, many of the deductions that high income clients count on to lower taxable income were eliminated altogether or capped.

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Business owners with pass-through income might qualify for up to a 20% deduction on their QBI, but owners of specified service companies can take the deduction only if their taxable income does not exceed certain thresholds.

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Defined Benefit and Cash Balance plans are more valuable now than ever. These plans provide a maximum “above the line” deduction which can lower taxable income an average of $100,000 or more.

This is a new opportunity to show CPAs, Enrolled Agents and Tax Advisors how to help clients to hold onto more of their earned income. However, if they don’t talk to clients before year-end, they will have missed the deadline to set up high contribution retirement plans.

Reach out to your CPA network now. We’ve developed a number of materials to support you as you talk to your CPA contacts.

View and Download Marketing Materials

Share these flyers with your CPA contacts
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Download Defined Benefit CPA Overview

Download Cash Balance CPA Document

Download Cash Balance CPA Overview

Why High Contribution Retirement Plans – Defined Benefit and Cash Balance Plans – Are More Valuable Now

Under the TCJA, specified service businesses may qualify for the full 20% deduction against QBI if taxable income is below $157,500 for single tax payers or $315,000 for married tax payers. Individuals with high self-employment income and small business income may be able to lower their income sufficiently to qualify by opening Defined Benefit or Cash Balance plans


Online Calculator for Defined Benefit PlansFree Retirement Plan Illustrations

Not sure if your client qualifies? Run an estimate yourself online and then give us a call. We can refine it for you and help you talk your clients through it.


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