Small Business Owner's Retirement Bail-Out

Andy Andrews - Age 53 Angie Andrews - Age 53

First Payment on June 05, 2028

Annuity Amount of $36,300

Why the Business Owner Might Need a Bail-Out

Business Owners and Other Professional...

when saving for their retirement inside of their pension plan, are burdened with the costly non-discriminatory requirements demanded by pension law. While there are minor differences based on the varied plan types, in the basic rule is as follows: the percentage of income saved for the business owner must also be saved for the balance of the work force.
 

Annual Savings Goal
Owner’s Annual Income
Required % for Workers
Workers’ Payroll Assumption:
25% of Workers Payroll

$60,000
$240,000
25%
$240,000
$60,000

     To save $60,000 for Himself, he must pay $60,000 for other workers!

Initial & Annual Contribution

$60,000

Future Gift

$720,000

(Approximate Value)

Retirement

Gift Annuity

5.04%

  1. Property transferred to charitable organization. Total tax deduction of $191,101; may save income taxes of $75,676.

2. Annuity payout of $36,300. Tax 

    free payout $20,497.92. Estimated 

    total payouts are $1,127,022

    Based on total tax benefits, an

    effective rate of 7.72%.

3. After annuity payments

    distributed to annuitants,

    approximate remaining

    value given to church.

Tax Savings to Grow

Church Finances

CLERGY TAX RELIEF

GBRYANT@CLERGYTAXRELIEF.COM

PHONE:   (913) 620-5535
FAX:        (816) 673-7701

7812 N. PROSPECT AVENUE
KANSAS CITY, MO 64119