Reduce taxes, grow wealth, leave a meaningful legacy
Strategy
Combine Solo 401(k), Solo DB Plan, and Charitable Remainder Trust
Crushing Taxes with Solo-K + Solo-DB
1
Solo-K Contributions
$132,000 per year, combining employee and employer contributions
2
Solo-DB Contributions
$500,000 per year, tailored to retirement goals
3
Tax Savings
$252,800 annually, totaling $2.53M over 10 years
The Power of Tax-Deferred Growth
Reduced Taxable Income
From $1.4M to $768K, maximizing current savings
Compound Growth
Deferred income grows tax-free, accelerating wealth accumulation
Future Flexibility
Access funds in retirement, potentially at lower tax rates
Giving Back with a CRT/CRUT*
1
Annual Contributions
$300K in appreciated securities (or cash) gifted for 10 years
2
Tax-Free Growth
Assets grow at 5% annually, compounding without tax drag
3
Future Income
$244,500 annual payments starting Year 11, with potential for growth
CRUT: Immediate Benefits, Lasting Impact
1
Tax Savings
$1.2M in additional tax savings over a decade
2
Wealth Growth
CRUT value reaches $4.89M by Year 10
3
Charitable Legacy
$3M donated to chosen charities at end of CRUT term
CRTs are super versatile for planned giving, but they come in all kinds of setups, like NICRUTs or NIMCRUTs, which pay out the lesser of net income or a set amount. If there’s income, it gets distributed—even if it’s below the 5% minimum for CRUTs. Bottom line: these trusts need expert legal and financial advice to get them right.
10-Year Strategy Results
This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.
Ongoing Income and Impact
Solo Plan Distributions
$250K per year, providing stable retirement income
CRUT Distributions
Starting at $244,500 per year, with potential for increase
Charitable Impact
$3M donation ensuring lasting positive change
Why This Strategy is a Game-Changer
Significant Tax Savings
Reduce your tax bill by millions, keeping more of your hard-earned income.
Accelerated Wealth Growth
Benefit from tax-deferred and tax-free growth, maximizing your financial potential.
Purpose-Driven Prosperity
Build family wealth while making a meaningful impact on causes you care about.
Your Path to Purposeful Wealth
Ready to grow your wealth while making a difference? Start your journey today.
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
Independent Wealth Connections and LPL Financial do not provide legal or tax advice. Please consult with your tax or legal advisor regarding your personal situation.
This material is for informational purposes only and is not intended as tax or legal advice. Consult your financial professional before making any decisions.