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Section 79

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:

  • Owners and employees of a C Corporation
  • Owners and employees of a LLC taxed as a C Corporation
  • Owners and employees who hold 2% or less of pass-through entities stock

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.