Income Tax Planning for High-Income Individuals: Defined Benefit and Other Plans, Tax Reform Opportunities

Retirement planning provides many opportunities to reduce income tax liability and set-aside assets for the future. Defined benefit plans (DBPs), including cash balance plans, allow high-earners to make tax-deductible contributions of as much as $200,000 annually. Roth conversions and back-door Roth arrangements forego the immediate tax deduction on plan contributions in favor of tax-free growth and an exemption from annual RMDs in retirement.

High-income taxpayers often gift large amounts to charities. Tax reform raised the AGI floor to 60% for charitable contributions, making significant donations slightly more appealing. Charitable gifts to a donor-advised fund, CRT and even a CLT can provide immediate tax breaks if appropriately structured.

In addition to retirement and charitable options, recent tax changes also include opportunities to increase the 199A deduction and capital gains deferral opportunities with the new opportunity zones (OZs).

Listen as our panel of experts discusses retirement, charitable and capital gains strategies to minimize taxes paid by taxpayers in the top bracket.

1. Identifying taxpayers for high-income planning
2. Charitable planning
3. Retirement planning
4. Tax reform opportunities
5. State tax planning

The panel will review these and other critical issues:

• Who is eligible for a defined benefit plan?
• When is a Roth conversion an appropriate strategy?
• How can a taxpayer defer taxation using opportunity zones?
• What is a donor-advised fund, and how are these used to save tax?
• Should a taxpayer consider a CRT, CLT or other gifting strategies?

Learning Objectives

After completing this course, you will be able to:

• Identify tax planning strategies for high-income taxpayers
• Discern between charitable gifting options
• Recognize new planning strategies after tax reform
• Determine whether a Roth conversion may benefit a taxpayer

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).