The Value of Private Banking for Business Owners.

My client Business Owners appreciate the value of the following knowledge…

1. How to pay insurance premiums with tax free dollars.

2. How to pay off loans with tax savings advantages.

3. How to use the same dollar more than once.

4. How to properly and easily track loans and interest volume. Watch a video overview here.

5. How to finance business equipment and at the end of the term have your purchased item, the principal and the interest back in your pocket and control. Watch video here.

6. How to borrow money without having to qualify for it. Read the article under the video here.

7. How to protect your business, business partners and family from possible calamity.

8. How to earn tax free dividends and tax deferred growth which can be accessed tax free without penalty or restrictions.

9. How to create a sustainable business plan that will protect your business for generations.

10. How to create a tax free, supplemental retirement income beyond what you thought possible.

11. How to move money from your business to your personal accounts in a tax advantaged setting.   I’ll not give all our secrets away here.

If you are a business owner interested in learning more about “how to…”, contact me today.

Jennifer Hansen

845-649-7487

Jennifer@DebtDiagnosis.com

Employer’s Advantages

A nonqualified deferred compensation plan provides the following benefits to an employer:

  1. The benefits payable to the employee are tax-deductible when paid.
  2. The employer can provide a deferred comp or salary continuation plan on a selective, pick-and-choose basis.
  3. The plan does not have to be submitted to the IRS for prior approval.
  4. The plan is relatively easy and inexpensive to establish, requiring only the execution of a relatively simple agreement between employer and employee.
  5. The costs to administer the plan can be lower than those of qualified plans.
  6. The benefits provided may vary from one covered employee to another, in the complete discretion of the employer.
  7. There are no statutory restrictions on termination of the plan, as there are with qualified plans.
  8. No minimum or maximum participation rules need be met. The plan may be established for only one employee or for 150 or more employees in a large corporation.
  9. The plan may be used either in lieu of, or in addition to, a qualified retirement plan.
  10. The plan may be used to attract new employees and to retain valuable existing employees.
  11. The plan may be used in lieu of giving the employee an ownership interest in the business, thereby diluting the owner’s control.
  12. The cash values of a policy used to fund the plan informally are available to the employer during the accumulation period.
  13. The benefits payable under the plan can be tied to company or individual performance, thus giving the employee additional incentive to be productive and effective.

Employee’s Advantages

A nonqualified deferred comp plan provides the following benefits to the covered employee:

  1. The employee pays no tax on the deferred amounts until benefits are received, if the plan is properly structured.
  2. The plan can be used to supplement the retirement benefits payable under a qualified retirement plan.
  3. Death and disability features can be included in the plan, as well as retirement benefits.
  4. The plan may provide a survivor benefit feature if the employee dies after benefit payments begin.
  5. The employee may drop into a lower tax bracket at retirement, thus increasing his or her after-tax disposable income when the plan benefits are received.
  6. For higher income executives who can no longer make deductible IRA contributions, a deferred comp plan can be used to replace the lost IRA benefits.
  7. For the employee who changes employers late in life and has limited or no opportunities to accumulate funds in the new employer’s qualified plan, the deferred comp plan can be used as an alternative.
  8. Employees adversely affected by the limits on contributions to and benefits from qualified plans can supplement their retirement incomes with a nonqualified plan.
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August 8, 2011 · Jennifer · No Comments
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