So what changed?
New regulations set last year by the Treasury Department have left many struggling to meet the requirements for the 20% pass-through income deduction. Some were still able to take advantage by splitting firms or practices, for example, but these new regulations have put a stop to many “workarounds.”
High-earning service professionals are working to find ways to reduce their income limits to below $315,000 if they are married, or $157,000 if single to take advantage.
So what if you don’t qualify?
A cash balance plan can help those who don’t meet the qualifications set for the 20% pass-through income deductions lower their average gross income. In fact, up to $390,000 in deductions can be saved. A cash balance plan can actually help you reduce your taxable income AND your adjusted gross income.
Is a cash balance plan right for you?
There is a lot that goes into making sure that a retirement plan fits your needs whether you are are a doctor, lawyer, business owner etc. Significant tax savings can be left on the table if you don’t take the time to understand your options. At Life, Inc. Retirement Services, we specialize in these “custom” retirement plans. We understand it isn’t a one-size-fits-all solution, and we are committed to staying on top of the changes to ensure you can take advantage of every option available to you. Set up a free consultation with us today to figure out what will be best for you in the long-run.