The owner of a successful and growing home construction business had seen his annual tax bill increase yearly to the point where he was in the top marginal tax rate. We reviewed his tax return and business expenses and recommended that he switch to an S Corp for tax efficiency, and set up a Cash Balance Plan in tandem with his existing 401(k) Plan to allow for a much larger tax deferral than the 401(k) alone would permit. These changes lowered his income tax bill by over $100,000, along with additional significant tax benefits through the S Corp structure.
