Help High Income Clients Qualify for the 20% Tax Deduction
High contribution cash balance and defined benefit plans have the potential to bring your small business and self-employed clients below the taxable income thresholds ($315,000 married tax payer, $157,500 single) and save them tens of thousands of dollars in tax liability.
Recently, a client was able to contribute $238,100 to a combined DB+401(k) and reduce current year tax liability by $78,520. Their large annual contributions are new assets for their advisor to manage.
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