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ArticleAndrew Altfest, CFP®, MBA quoted in Financial



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Excerpted from article by Tobias Salinger on FinancialPlanning

Being your own boss creates big opportunities for tax savings — but only if financial advisors and their clients understand all of the complex rules surrounding self-employment, experts said.

Self-employed clients include physicians and other high-earning medical professionals — a niche served by Andrew Altfest, the president of New York-based Altfest Personal Wealth Management.

“While their wealth can grow, business owners often feel pinched because they don’t want to draw on their assets fearing adverse tax consequences,” Altfest said in an email.

“Tax strategies to reduce tax liability include Roth conversions, particularly in low-income years such as just after retirement, qualified charitable distributions, 1031 exchanges, step-in basis planning for their estates, loans and, when it comes to selling a business, proactively allocating for goodwill vs equipment/materials which will produce better and worse tax treatment.”

Individual 401(k) advantages: Certain business owners see big tax and retirement benefits from individual 401(k) plans, Altfest said. “A favorite for contractors and solo practitioners is the individual 401(k), as you get to contribute as the employer and the employee, potentially allowing for much larger contributions,” Altfest said. “This not only helps with savings but reduces taxes.

Big savings potential: Certain business owners may find substantial tax savings by using defined-benefit pension plans, Altfest said. “As business owners get older and have a steady reliable stream of income, defined benefit plans allow for large tax deferred contributions to be made,” he said. “The tax savings of large defined-benefit contributions can exceed seven figures!”


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At Altfest, we stand ready to help you find the most suitable ways to protect your personal assets from liability. We know everyone’s scenario is unique, so reach out to our firm with any asset protection or financial or estate planning questions you may have. Altfest advisors will review your circumstances and offer ideas about which asset protection strategies could best serve you and your family.

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Investment advisory services provided by Altfest Personal Wealth Management (“APWM”). All written content on this site is for information purposes only. Opinions expressed herein are solely those of APWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.

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