Defined Benefit Plans: Untapped Tax Savings for Firms w/ David Podell

In this episode of Building the Premier Accounting Firm, Roger Knecht interviews David Podell about defined benefit plans and tax strategies for business owners. They explore how accounting professionals can better advise clients on tax planning beyo†nd basic preparation, focusing on strategies to maximize tax benefits through retirement plans.

In This Episode:

00:00 Welcome to Building the Premier Accounting Firm
00:54 Introducing David Pudel
02:05 The Journey into Tax Strategies
04:02 Tax Preparation vs. Tax Planning
05:42 Strategies for Business Owners
07:05 Maximizing Deductions with Defined Benefit Plans
09:06 The Accountant’s Role in Tax Planning
11:10 Balancing Profitability and Tax Mitigation
12:37 Effective Personal Tax Strategies for Business Owners
15:40 Compensation Strategies Beyond W2
17:23 Understanding Defined Benefit Plans
20:20 Flexibility in Funding Defined Benefit Plans
23:01 Employee Benefits and Vesting
26:05 Identifying Candidates for Defined Benefit Plans
30:14 Understanding Tax Mitigation Strategies
32:36 401(k) vs. Defined Benefit Plans
34:18 Key Differences with Key Man Insurance
36:41 Income Qualifications for Pension Plans
39:12 Identifying Suitable Clients for Tax Strategies
41:25 The Role of Accountants in Tax Planning

Key Takeaways:

• 🔎 Identify clients who can allocate $100,000 or more annually for tax-advantaged retirement plans.

• 🤝 Collaborate with financial experts like David Pudel to offer advanced tax planning strategies, such as defined benefit plans.

• 💰 Understand how defined benefit plans can increase a business’s valuation by adding back significant owner contributions.

• 📅 Implement tax planning strategies proactively throughout the year, not just during tax season, to optimize client benefits.

• 💡 Recognize that defined benefit plans work best with companies having fewer than 50 employees.

Featured Quotes:

• David Podell: “This solution is one of the oldest and best ways to add value to a client…clients are consistently coming to you and saying, help me, help me.”

• Roger Knecht: “Accounting success is universal.”

• David Podell: “We want the accountant to benefit financially and yes, they can…they are fully involved in these plans.”

Behind the Story:

David Podell shares his journey into tax strategy, sparked by a client’s need for a defined benefit plan and the realization that this approach can provide substantial tax deductions. He emphasizes the importance of accountants evolving from preparers to proactive advisors who help clients minimize tax liabilities and maximize wealth. The discussion highlights the collaborative opportunities for accounting professionals to partner with experts, offering advanced strategies like defined benefit plans that significantly benefit business owners.

Top 3 Highlights:

1. Defined Benefit Plans: Offer higher contribution limits than 401(k)s, significantly reducing taxable income.

2. Accountant’s Role: Facilitate collaboration between clients and financial experts for optimal tax planning and benefits.

3. Ideal Clients: Small business owners with over $250,000 in profits and the ability to invest $100,000+ annually.

Conclusion:

Thank you for joining us for another episode of Building the Premier Accounting Firm with Roger Knecht. For more information on how you can establish your own accounting firm and take control of your time and income, call 435-344-2060 or schedule an appointment to connect with Roger’s team here.

 

Sponsors:

Universal Accounting Center

• Helping accounting professionals confidently and competently offer quality accounting services to get paid what they are worth.

 

Offers:

Book a call with Business Benefits Consultants and learn how you can save your clients money and reduce their tax liability www.businessbenefitsconsultants.com

 

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