Senior Attorney Saves $97,000 with Retirement and Charitable Strategy
As a senior partner at a DC law firm, my income was climbing year over year but my tax strategy was nonexistent. I was writing large checks to the IRS and my CPA's only advice was to "make more retirement contributions." When I maxed out my 401k, he shrugged and said there was nothing else to do.
AE Tax Advisors showed me how wrong that was. They designed a defined benefit plan for a small consulting entity I operate on the side for expert witness work. The contribution limits for defined benefit plans are dramatically higher than a 401k, and at my age and income level, I can shelter a substantial amount each year while building guaranteed retirement income.
They also restructured my charitable giving through a donor-advised fund. I was already donating a significant amount to several nonprofits each year. Instead of writing individual checks, I now make larger contributions to the DAF in high-income years, taking the full deduction when it matters most, and distribute grants from the fund over time. The charities get the same support, but my tax benefit is optimized.
Finally, they implemented year-end tax bracket management -- accelerating or deferring income and deductions to keep me in the most favorable bracket each year. Something my old CPA never even discussed.
Total savings: $97,000 in year one. The defined benefit plan and charitable strategy will continue producing savings for years to come.
AE Tax understands the legal profession and high-income professional planning. Their advice was sophisticated, well-documented, and implementable. I genuinely wish I had found them a decade ago.