Tax-Advantaged Benefit Plans
Through financial planning due diligence, you are most likely already taking advantage of wealth accumulation and preservation options, contributing up to $200,000 or more annually in IRS-approved qualified retirement plans with tax-deductible dollars.
However, as a high-income professional, you probably still have surplus net earnings that are being lost to taxes unnecessarily. Internal Revenue Code Section 79 allows professional businesses established as C Corporations to offer a specially designed series of benefits for both owners and their employees on a tax-deductible basis, including group term life insurance and supplemental retirement funding.
Section 79 programs are not subject to qualified plan contribution limitations, and can therefore create incremental tax-advantaged savings. In addition, Section 79 can provide liquidity for estate tax purposes or charitable gifts for value system endowment.
Section 79 Plans are available to:
Gain and Retain Highly Skilled Staff Members
Benefits provided to key personnel are becoming increasingly important in attracting and keeping talented personnel. And, under Section 79, each full-time practice employee can enjoy a portable benefit. Ask your financial advisor how to establish a tax-advantaged benefit plan for your business today.