Tax Savings to Grow
Church Finances
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
Retirement
Gift Annuity
5.04%
Future Gift
$720,000
(Approximate Value)
-
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.