A Duluth, Ga., CPA believes accountants should do much more than prepare taxes.
In a blog post titled “Is Your CPA Helping You Develop a Legacy and Fulfill the Parable of the Talents?” John Dillard, president of His CPA PC, advises taxpayers to work with their CPA “who can see both ‘the forest and the trees.’ ”
Dillard suggests several considerations for a client who is reporting substantive taxable income and is considering a retirement plan:
- Adding you to pay you for your contribution to the family business.
- Adding you to salary while continuing your present retirement plan an owner-only 401K.
- Considering setting and funding a Defined Benefit Plan this year.
- Adding you to salary and setting up a Defined Benefit Plan this year.
- Impact to retirement plans of adding other employees other than yourselves if do so in future years.
- IRS Filing Requirements of an Owner 401K vs. a Defined Benefit Plan, annual costs and Plan Documents.
Taxpayers can also think about starting and beginning funding of a legacy, through a will or a trust, in which a substantive portion of financial assets are left to charitable organizations. With a financial advisor, consider:
- Plan requirements of adding you to salary in each an owner-only 401K and Defined Benefit Plans.
- How adding other employees other than yourselves might impact an owner-only 401K and Defined Benefit Plan.
- What they suggest as options to study and consider setting up a legacy and to update your wills accordingly.
- Do several projections based upon several varying rates of returns given present assets, life insurance, liabilities etc. and saving levels.
- Funding your children’s college tuition.
- Review and consideration of future estate planning considerations, taxes and funding.
- Review and consideration of present life insurance, disability insurance and long term care insurance.