Lessons Learned from 2019

29th Jan 2020

 

Lessons for 2019

 

 

You talked. We listened.

Last year, our Plan Design Consultants spoke with over 3,000 advisors, like you, about high-contribution retirement plans. They came to us looking for retirement plan solutions that can really impact their high-income clients’ tax liabilities. As a reminder, Defined Benefit plans and Cash Balance plans potentially allow the largest contributions and tax deductions for their clients — $100,000 or more each year.

A few tips about high-contribution retirement plans early in the year could help your high income, self-employed clients pay themselves at tax time next year — instead of the IRS!

Lessons Learned from Advisors in 2019:

1. THEY STARTED THE CONVERSATION EARLY

  • They identified high-earning clients early instead of waiting for year-end business results.
  • They used tax season to start the conversation while clients were focused on tax bills.

How to have similar success: If your clients have SEPs or 401(k)s and want to contribute more, we can help start the conversation. Call us at 866-269-2706 to talk about any of your prospects or clients.

2. THEY FIGURED OUT HOW HIGH-CONTRIBUTION RETIREMENT PLANS WORK UNDER NEW TAX LAWS

  • They realized that the new tax law increases the value of high contribution retirement plans, offering large “above the line” tax deductions for certain clients – like owners of S corps, partnerships and sole proprietorships.
  • They understood that Section 199A may qualify owners of pass-through entities to take the 20% deduction by reducing taxable income below the taxable income thresholds for 2019.
  • Click here to download our ‘Making the New Tax Law Work’ whitepaper.

3. THEY OPENED PLANS FOR THEMSELVES

They banked on the value of these plans. That’s why many our clients in 2019 were independent RIAs and CPAs who opened plans for themselves.

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866-269-2706 | DBPlans@dedicated-db.com

 

 

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