Real Estate Agent / Sol Proprietor

CASE: Chad

  • Chad, age 53, is married.
  • He is a successful real estate agent with no employees.
  • Chad has a net profit of $500,000 (after paying self-employment tax).

Chads Tax Liability before implementing Designer DB Plus® Plan

  • Net Profit after Expenses and deductions$500,000
  • Married Filing jointly tax Liability at 35%$175,000
  • Creditor Protected Retirement Savings$0.00
  • Tax Free Medical Reimbursement in Retirement$0.00

GOAL: Chad wants to retain more of his earnings, pay lower taxes, secure his retirement savings, and prepare for the high cost of health and medical care in retirement

ADDITIONAL DEDUCTION: As an owner of a pass-through entity, this client qualified for the 20% QBI tax deduction under the (Section 199A) threshold for married couples.

Note: his income was above the threshold before plan implementation, disqualifying him from the additional tax deduction.

  • Net Profit after Expenses:$500,000
  • Plan Contribution$175,000
  • Qualified Business Income:$0.00
  • Pass-through Deduction:$0.00
  • Taxable Income:$0.00

  • Tax & Deferred Savings First Year

    $129,304

  • First-Year Creditor Protected Savings:

    $262,000

*Please consult your tax advisor; RAS does not provide tax advice but will collaborate with your tax advisor.

* Tax savings compared to no Plan and (Section 199A) QBI deduction. The case assumes an estimated 37% tax rate. RAS does not provide tax advice. This example is based on specific assumptions and is used for illustrative purposes only.