Client Perceptions – Whether justified or not, clients frequently gauge their accounting and financial advisors by how much income tax they pay and how their advisors help them reduce their taxes.
Higher Income Tax Rates – Especially with increased income tax rates, the ability to make tax-deductible contributions to a well-designed qualified retirement plan is one of the most advantageous tax benefits available to your clients under the Internal Revenue Code.
The MandMarblestone Group offers the two most powerful, IRS-approved qualified retirement plan designs available today:
- Cash Balance Pension Plans – A cash balance pension plan, most often in combination with our OCPP® 401(k) profit sharing plan, is for those business owners who want to deduct more than $59,000 per year, while still controlling their employee contribution expense. We have designed many successful, IRS-approved cash balance plans that generate owner contributions in excess of $250,000 per year. Click on the above paragraph heading to view a short Q and A on cash balance pension plans.
- OCPP® 401(k) Profit Sharing Plan – Our “one category per participant” 401(k) defined contribution plan design maximizes tax-deductible contributions to owners, family members and other favored employees, while allowing year-to-year flexibility and control of the employee contribution expense.
- Combined Contribution Limits – Here are maximum, annual contribution estimates for a combination cash balance/defined benefit – 401(k) profit sharing plan available at the following ages:
Age Maximum Annual Contribution
In-House Enrolled Actuary – While MandMarblestone has worked effectively for many years with independent consulting actuaries, given the increasing frequency of cash balance and traditional defined benefit pension plans (as part of a qualified retirement plan program to generate substantial income tax reductions), we now have a robust, in-house actuarial department.
Director of Actuarial Services – Virginia Wentz, E.A., our Director of Actuarial Services, has more than 30 years of actuarial experience, with an emphasis on plan design for small to mid-size companies in which benefits may be skewed to owners and valuable employees. Virginia’s expertise and practical experience has enhanced our ability to deliver qualified retirement plans that align with owners’ tax and financial planning objectives.
Track Your Valued Clients – With the ongoing preparation of 2014 income tax returns and/or the annual financial review for many of your clients, consider listing those clients who may be able to reduce their income taxes by efficiently designed qualified retirement plans that target larger contributions to the favored group.
Then, don’t hesitate to contact Bob Mand, Ken Marblestone, Ian Haring or Mike O’Connell at 215-222-5000 to explore these tax reduction opportunities, or email us at:
Complimentary Plan Design Analysis – There is no fee for a complimentary analysis that compares your client’s current plan contributions to an alternative, more powerful and flexible plan design that better aligns with an owner’s contribution objectives.
Non-Compliant Plan Remediation – MandMarblestone has a history of success with the IRS in remediating non-compliant retirement plans.
Mergers & Acquisitions – MandMarblestone provides limited scope legal consulting services in connection with the treatment of qualified retirement plans in mergers and acquisitions.