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Home>>Expertise>>Retirement
/Benefit Plans
Retirement and Benefit Plans Common Issues Americans today face a much greater responsibility to manage
our own retirement future. Decreasing number of pensions and increasing retirement age
are the cold reality. With longer life spans and many new
uncertainties, everyone has to accumulate more and make his/her retirement fund
last longer. Yet retirement/benefit plans are multi-faced and
complex. In addition, like many other parts of our tax law, rules governing
retirement and benefit plans change often and fast. For example, the extra catch-up
contribution for taxpayers at age 50 or older was still very new. But that “little change” has a big impact on those individuals.
Another example: the once attractive Keogh suddenly lost its charm when
the new tax law gave the "hassle-free" SEP the same tax saving power. Solutions for You While tax laws concerning retirement and benefit plans
vary greatly, they have one thing in common: offering legitimate and attractive “tax
shelters” for your money. Assume a 35 year-old taxpayer puts $10,000 per year into a retirement plan with an annual growth rate of 8%. She would have $1,223,458 by age 65. Now assume everything is the same except her savings are not tax sheltered and her combined federal and state income tax rate has been 30%. By age 65 she would only have $544,848. When she turns 65, even if the same tax rate would apply (which is unlikely after retirement), the taxpayer would still have much more than that without using retirement plan. With in-depth training in this area, we can assist you to catch “windfalls” and avoid “traps”. For example, do you know that SIMPLE plan beats 401(k) hands-down in compliance burden and the cost? Are you aware that certain retirement plans let both the business and its employees avoid FICA, one of the most burdensome taxes levied on every employee and employer? We help both enterprises and individuals utilizing the powerful tax saving plans by providing "turn-key" packages and consultation. |
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