The Restricted Property Trust (RPT) is an employer-sponsored plan that provides tax-favored long-term cash accumulation and income distribution. RPT is perfect for business owners who want to reduce income tax and increase tax deferral with the potential of tax-free income later in life.
The benefits of RPT for business owners include:
RPT provides a stable, conservative platform for businesses to reduce their taxes and potentially appreciate assets. This tax saving plan is ideal for financial firms, medical groups, high-profit partnerships, private companies with executives earning above $500,000, C-Corps, S-Corps, and LLCs.
A neurosurgeon was looking for additional ways to defer tax beyond the traditional 401(k) and cash balance plan. We recommended a Restricted Property Trust (RPT) to her. Over the next 10 years, she will be able to save $840,000 in tax. She will pay $501,000 in year ten. So, net tax savings for her will be $339,000 with potential tax-free income of approximately $2,985,520.