RESTRICTED PROPERTY TRUST CONCEPT
Restricted Property Trust (RPT) is an employer-sponsored plan that provides business continuity through a death benefit and potentially long-term cash accumulation and tax-free income distribution.
The RPT is an attractive alternative to deferred compensation plans, defined benefit plans, and section 162 bonus plans for successful business owners who wish to mitigate income taxes and appreciate assets.
RESTRICTED PROPERTY TRUST (RPT) CONTENT:
Like everyone else, successful business owners need to plan for retirement. Unfortunately, the cost of typical qualified plans (401k, defined benefits, etc.) can become prohibitive because of the need to incorporate all, or some, of their employees into the plan. In addition to this “cost” of the qualified plan, there are also stringent & complicated ERISA regulations that carry substantial penalties for non-conformity. Because of the cost and risk of ERISA plans, many business owners turn to non-qualified alternatives which allow for discrimination; the ability to limit the plan participant to only themselves and/or a small, select group of key employees. However, like qualified plans, Non-Qualified Deferred Compensation plans can be complex and highly regulated and unfortunately, like qualified plans, income from these plans is taxed as ordinary income at the time of retirement.
The Restricted Property Trust (RPT) allows a business owner to make fully tax-deductible contributions into the plan on their behalf while recognizing only a portion of the contribution in their current income. Any additional taxes that are deferred in the RPT are paid by the plan at time of termination. By using this strategy, upon termination of the plan, the business owner can use the assets of the plan to generate non-taxable cash flow, exchange it for a larger income stream (annuity), or maintain it as a death benefit and asset that is not correlated to the stock market with guaranteed growth.
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RESTRICTED PROPERTY TRUST (RPT)
You will learn how to create a substantial income tax deduction as well as an asset that can grow and be distributed tax-free in order to build wealth for retirement outside of your business.