Tax Planning Means Different Things to Different People

A CPA/accountant/EA typically thinks of tax planning as doing a tax return for a client and sending them the bill for the taxes due. Some might recommend a SEP IRA or SIMPLE Plan, but they typically do not deal with real tax planning.

An attorney thinks of tax planning as doing someone’s living trusts so the client can maximize estate tax exemptions.

A financial planner/insurance advisor typically thinks of tax planning as the use of a 401(k) plan.

What our firm does is quite unique. When we deal with tax planning we hit on a number of different topics (many unique) to make sure we are being PROACTIVE not REACTIVE when it comes to tax planning.


Tax planning tools come in many forms: Correct Corporate Structure, Captive Insurance Companies, FLPs, “Freeze” Partnerships, Retirement Life (a tax free wealth building tool), Roth IRA and 401(k) Plans, Section 79 PlansEquity Harvesting, 401(k) PlansNew Comparability Profit Sharing PlansDefined Benefit Plans, 412(e)3 Defined Benefit Plans (and carve out plans), 401(h) PlansCash Balance Plans, ESOPs, Charitable Remainder Trusts, Charitable Gift Annuities, Family Foundations, Intentionally Defective Grantor Trusts, Long-Term Care Insurance, HSAs, Corporate Structure, Single Premium Life Insurance (with LTC rider), Roth IRA Conversions, etc.

What we want to impress upon potential clients is that if you are not using a firm that knows the above topics and more, YOU ARE NOT receiving the best advice possible.

What does that mean? It means you are paying too much in income taxes and capital gains taxes, and ultimately that your heirs will pay too much in estate taxes upon your death.

Don’t do what everyone else does (the do nothing position), be proactive to protect your money from the IRS and state government. Remember, your number one guaranteed creditor every year is the IRS. Only you, with the help of qualified advisors, have it in your power to protect your money.