The Quantum Group focuses on Tax Mitigation and Wealth Preservation. We help individuals and families at all levels of wealth minimize their exposure to tax on their earned income, the growth of their assets, and the passing of their assets to the next generation(s). Through proper Estate Planning, Asset Protection, Qualified and Non-Qualified Plan design, we will assist you and your advisory team in achieving this peace of mind.
You have worked hard all your life to provide the best for yourself and your family. No matter how large an estate you build, taxes can consume a significant portion of your wealth at death and force the untimely liquidation of an operating business or real estate.
The Quantum Group provides expertise to ensure that our client’s estate is structured in the most tax efficient manner. Our team of experts work with your legal and tax advisors to develop an estate plan that best suits your personal and business goals. Many times, it is as simple as updating a will or creating an Irrevocable Life Insurance Trust (ILIT). Other times, it involves more complex planning techniques (i.e. discount valuations, family partnerships, GRAT’s and Charitable Remainder Trusts (CRT’s), etc.).
Income and estate tax laws are constantly changing. Our strategic alliances with the country’s foremost legal and tax experts help us keep you abreast of those revisions that impact your estate plan.
The Quantum Group will design a qualified plan that best suits the specific needs of your company. Qualified plans can offer significant tax deductions for your contributions to the plan and employees do not pay taxes on plan assets until these assets are distributed. A properly structured qualified plan also allows a business owner to attract and retain high-quality executives/employees. A qualified plan may be the tiebreaker that wins over a skilled person who is offered relatively similar compensation packages from different potential employers. This is an extremely valuable planning tool that must be explored.
Non-Qualified Deferred Compensation (NQDC) plans emerged because of the cap on contributions to Qualified Retirement Plans. High-income earners are unable to contribute the same proportional amounts to their tax-deferred retirement savings as average or low-income earners. Therefore, NQDC plans are a way for high-income earners to defer the actual ownership of income and avoid income taxes on their earnings while enjoying tax-favorable investment growth.
NQDC plans can be established for selected officers and other key employees as a form of fringe benefit not available to the company’s other employees. They are often used as a “golden-handcuffing” device by which key executives will be handsomely rewarded in the future if they remain with the company for a specified number of years, or until retirement age.
You cannot achieve these goals through a traditional retirement plan (assuming you want the tax advantages) because the laws require you to provide benefits that are uniform and that do not discriminate too much in favor of key executives. The best arrangement for accomplishing your goals may be through a NQDC plan.
*By “non-qualified,” we mean simply that the plan is not subject to certain federal pension law provisions, such as the ones on nondiscrimination, eligibility, funding, and vesting. As a result, it does not get as many tax breaks as regular pension plans do. You should not be lulled into believing that non-qualified plans are not subject to any of the provisions that govern qualified plans; they are, in fact, generally subject to all of the provisions except those mentioned above.