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OUR EXPERIENCES

Perhaps the most Advanced Qualified Plan Design in the qualified plan realm is the Split Funded Combination Plan. The term “Split Funding” is an actuarial term for the usage of the maximum allowable permanent insurance premium as part of a new contribution into a Defined Benefit pension plan. The concept of a Split Funded Combination Plan is when you then take that maximized Defined Benefit pension plan and fully max cross-test it against a maximized Defined Contribution plan, based on eligible members, their ages, and their compensation. This is a complex actuarial procedure that when handled efficiently, can result in larger pre-tax contributions for owners as well as the key members of a business, while also minimizing the overall eligible demographic cost. These advanced plans protect the future result of a fully funded pension and can deliver larger deductions with more annual flexibility through the key funding years, in comparison to other common styles of qualified plans. Split Funded Combination plans and the “Split Funding” of qualified plans in general, are the primary types of plan designs that Shepherd Wealth Group is known for and specialize in.

2022 Company 1

This company had a standard profit sharing plan in place at inception. We we're able to reduce the employee cost and save them a tremendous amount of taxes via better testing, adding a 401(k) and a split-funded defined benefit plan.

2022 Company 2

This company had a SEP IRA in place at inception. We were able to transition that into a maximized profit sharing/defined benefit combination plan for tax reduction purposes.

2022 Company 3

This company had nothing in place at inception. They had very large 8 figure tax exposure every year and came to us for the use of plan design as a tax tool. We were able to derive a multi 7 figure annual deduction for them through a maximized profit sharing/defined benefit combination plan for tax reduction purposes. This plan also serves to exemplify how age factors into the results of plan contributions as all of these owners are maximum figures and the only differentiator is age. Each owner line shows the power of what can be done for 1 person self-employment scenarios ie; 1099's, smllc's, sole proprietors, etc.

2022 Company 4

This company had nothing in place but desired a 401(k) for employee retention purposes. We were able to deliver on the wish in addition to deliver a multi 7 figure deduction through a properly design combination plan structure. This was only made possible as 90% of the over 3000 person census was part-time and ineligible. This factor alone made the plan designable and saved the client from tremendous taxation.

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2022 CB vs SF Combo

This is a case study that takes what the industry believes to be "state of the art" and a max plan design (the status quo cb plan design) and shows it compared to a true max plan design, utilizing what can be done within the split funded profit sharing/defined benefit plan space for retirement and tax reduction purposes.

Areas of Expertise

  • Advanced Planning Strategies

  • Advanced Qualified Plan Design

  • Split-funded Qualified plans

  • Split-funded Combination plans

  • Estate Planning

  • Distribution Planning

  • Seasoned Money Strategies

  • Premium Finance 

  • Asset Management

  • Portfolio Design

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