How I help . . .

Here’s an example: A client was selling his farm and equipment over a five year period. When he sells the equipment he had to pick up the depreciation recapture as ordinary income on his tax return. The amount was approximately $400,000 per year. This put him in the 37 percent Federal Tax Bracket. We were able to set up a Cash Balance Pension Plan for him and he could defer $225,000 each year for the five year period. Once the farm is completely sold his income bracket will be 12 percent.

So we were able to help him save $56,000 each year on his tax return. This is a $280,000 tax savings over the five year period.