Insights

The RPT; A Deferred Compensation Platform
That Offers Tax-Free Distributions to Business Owners

The Restricted Property Trust (RPT) is an employer-sponsored plan that is an attractive alternative and/or supplement to deferred compensation plans for successful business owners who wish to mitigate current and future income taxes and accumulate cash in a tax-efficient manner.   The RPT provides business continuity through death benefit, long-term and tax-efficient cash accumulation, and tax-free income distributions, without the need to make the platform available to employees.

Additional details on the program are below:

RPT Benefits:

• Contributions are 100% tax-deductible to the business
• Final distributions are tax-free
• Program can be offered exclusively to owners/equity members or to any personnel selected (thereby bypassing the non-discrimination rules found in most retirement plans)
• Does not interfere with any current qualified plan assets or contributions and can be used as a supplement to any current pension plans
• Creditor protected assets

Ideal Candidates- Business Owners:

• Looking for further tax deductions BEYOND just their traditional pension plans
• That are owners of S-Corps, C-Corps, LLPs, or LLCs
• Have companies that generate gross income over $500,000
• With ages ranging from 30s to early 60s that are planning to work for the next 5-7 years
• Can fund a minimum of $50,000-$100,000 of premium annually for up to 7 years

For more information, please feel free to reach out to us.

The information presented here should not be construed as legal, tax, accounting, or valuation advice. No one should act on such information without appropriate professional advice and after a thorough examination of the particular situation.