If you own company stock in your retirement plan, you need to see this!
Watch Our Webinar on ESOPs
What business owners & employees need to know for retirement. Watch the recording, hear from Bill Lloyd, and learn how The Charitable Payraise® could help retirees reduce their taxes, increase after-tax cash flow, and give back. Mary McCooe shares how ESOPs work and what to expect as a business owner.
The Traditional Method
Traditionally, an employee & company contribute pre-tax dollars to a 401K. These funds are invested in a variety of funds and company stock.
The value of the account grows overtime, as additional deferrals and company match are contributed, and the value of the investments, including company stock, increase.
At retirement, these holdings are liquidated, rolled over, reinvested, and distributed as taxable income.
The ROQS® Method
As before, the employee & company still contribute pre-tax dollars to the 401K, allowing investments to grow over time, just as always.
However, once the employee retires or severs, a different strategy is employed:
- The 401K Funds are moved as usual into a Rollover IRA
- Simultaneously, the 401K’s Company Stock is sent into an after-tax Brokerage Account
- Next, the Company Stock is used to capitalize a new LLC, co-owned by the retiree and Charity(s)
- Here the 'secret sauce' is applied! This produces two new vehicles, the LLC and Roth IRA, to produce tax free cash flow!
Our Solution
By leveraging our unique method, retirees will significantly reduce their taxes, increase after-tax cash flow, and create a living legacy of good works via charitable giving.
To illustrate these improvements, our new proprietary tool, The ROQS® Method app will project potential scenarios related to your holdings by using ROQS®, compare & contrast ROQS® versus traditional strategies, and forecast long term results for both the retiree and charity(s).
Let Us Help You
To learn more about the ‘secret sauce’ of The ROQS® Method and sign a required non-disclosure agreement, please reach out to our team.
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All of us at The Charitable Payraise™ look forward to working with you, your advisor, and your favorite charities to optimize your retirement while making the world a better place
