|Section 79 Plans
|Your Best Resource for Section 79 Questions, Problems, Information
You WILL Be Audited For Your Section 79 Plan
Section 79 plans, listed transactions, reportable transactions, 419e, 412i, and captive
are all targets of IRS Auditors.
Do you know the ins and outs of these plans enough to protect yourself or clients? We do, and
we can help you too.
You WILL be audited. It's just a matter of when. You need help and you need it now.
Educate yourself here, then call for assistance. Your finances are at risk if you put off dealing
with this problem.
Call 516-935-7346 to speak with an expert today.
|Copyright (C) 2013 Lance Wallach
All rights reserved
|Most people have never heard of a Section 79 Plan, because it is a wealth building tool
pitched by insurance agents who really do not understand the math behind the plan.
|Lawline.com Continuing Legal
|WHAT ARE SOME of the THE FEATURES OF a Section 79 Plan?
A Section 79 Plan provides the company a solution that is:
** Fully Deductible
** Very Flexible
** Easy to administer, NO set-up costs or expensive annual admin fees
** Not subject to qualified plan limitations
** More benefits to the highly-compensated employee or owner(s) than
restrictive retirement plans
Along with my specialist partners, we help companies evaluate whether
implementing a Section 79 strategy would make financial sense
to meet the many and varied goals of the business owner(s) in a cost effective
and tax efficient manner.
The business partners that I work with to help companies fully explore,
implement and provide full administration on these plans have specialized in
Section 79 Plan administration since 1990 and provide administration for over
1,000 I.R.S. complaint and approved plans throughout the USA.
We'll help you take money out of your business on tax-advantaged basis, safely
diversify your assets, and provide an investment which will provide
a meaningful tax-free retirement income stream. Think of it as a ROTH IRA on
steriods - without the government restrictions on contributions and
with a tax-deductible component.
What is lacking from this pitch is that the IRS will look at your plan.
Section 79 Plan Advisor
We Help Business Owners That Already Have
A Qualified Plan, But Seek
Additional Tax Deductions & Retirement Income For Themselves and Perhaps Some Key
An Approved I.R.S. Section 79 Plan Offers Great Retirement Planning Opportunities
For Successful Business Owners of Both Large and Small Companies.
|Here's a quick example of a recent plan we helped a 45 year old small business
owner with the desire to increase his future retirement income,
protect his family in case of an untimely death and take more money out of his
business for the benefit of his family while playing as little taxes as
His business was very profitable and he didn't need to take out all of his profits to
meet his family's lifestyle and wanted to reduce current
income taxes and supplement his retirement income (without having to include a
new expensive benefit for employees).
We put a Section 79 plan in place that allowed him to deduct $100,000 a year of his
new life insurance policy premiums which will be fully
funded in just 5 years. The plan projects that starting from age 65, he will be able to
take tax-free distributions from his insurance policy
of approximately $114,000 per year until age 85 and then leave a small death benefit
to his beneficiary.
So he deducted his $500,000 contributions to the plan (and paid personal income
taxes on only about 65% of this amount) over the five years
and he is projected to receive over $2,000,000 in tax-free retirement income (which
is equivalent to over $3.5 million of taxable income at the
35% tax bracket).
In five years time, the gentleman could (at his option) begin new tax deductible
Section 79 plan and fund it over the next 5 years and increase his future
tax-free retirement income stream.
Some Section 79 plans have much larger contributions per owner while others may
make sound financial sense with only a $3,000/ month
contribution ($36,000 per year for 5 years).
After the five year funding period, the business owner has the OPTION to begin a
new 5 year funding program at a higher or lower contribution
to begin another round of taking money out of the business on a tax-efficient basis
to fund another tax-free retirement income stream.
|Section 79 Plans