During Wednesday’s seminar “Structuring Your Business for the Greatest Tax Benefits,” New York-based David Mandell, J.D., M.B.A., an attorney and financial planner based in New York, and partner and fellow financial planner Chris Jarvis, who’s located in Los Angeles, gave jewelers insight into several financial plans that could provide tax relief.
Mandell and Jarvis lectured jewelers on different types of plans for large and small businesses and used a chart to outline the plans’ key elements. Of the seven plans the two covered, including welfare benefit plans and personal employer organizations, they highlighted deductions, employee participation, costs, and suitability of plans.
More specifically, Jarvis explained to jewelers how they could actually invest-for a return-in an insurance company via a closely held insurance company. “This idea is great for businesses with $2 million or more in revenues,” he explained.
Mandell touched on the benefits of welfare benefit plans (also called 419 plans), where up to $1 million could be deductible, based on employees’ salaries. “Welfare benefit plans cover unexpected losses for employees,” says Mandell. “It’s not a great retirement plan, but it’s great for estate planning.”
Mandell and Jarvis contribute to the “Business Report” department in JCK magazine and are happy to talk to jewelers with financial questions. Contact Mandell at (800) 554-7233, and to reach Jarvis, phone (888) 317-9895.