Earn Free CE Credits
Learn to assist high net worth clients make their retirement plans work for them
We are pleased to offer you a chance to learn about the benefits of Cash Balance Plans as part of a company retirement plan for your high net worth clients. Bertram Financial with Fiduciaryk offers an educational session featuring this unique savings vehicle. The session will cover:
1) Is Cash Balance Right for My Client?
2) How a Cash Balance Plan Works
3) Tax Incentives of Cash Balance Plans.
Did You Know?
o Contributions to Cash Balance Plans are tax-deductible in the same way as they are in a Profit Sharing Plan.
o Contributions reduce both taxable income and adjusted gross income, so high income earners may move into a lower tax bracket. Given these recent tax increases, Cash Balance Plans may offer a significant tax savings:
- 1. Investment tax of 3.8% on unearned net income is now imposed on individuals making more than $200,000 (or $250,000 for married couples).
- 2. Capital gains and dividend taxes increased from 15% to 20%.
- 3. An additional 0.9% Medicare payroll tax is imposed on income above $200,000 for individuals (or $250,000 for married couples).
- 4. The top marginal tax rate increased to 39.6% for individuals earning more than $400,000 (or $450,000 for married couples).
- 5. The itemization of certain tax deductions is no longer allowed for individuals making more than $250,000 (or $300,000 for married couples).