Member Benefit: The Texas Chiropractic Retirement Plan
Written by Editor   
Friday, March 01, 2019 12:00 AM

Nicholas M. Boyd, Financial Advisor
Tax Favored Benefits 

The Chiropractic Retirement Plan (CRP) is off to a fast start in 2019. TCA members are signing up to define a path for their retirement investing, manage their adjusted gross income (AGI), reduce their taxes and manage their student loan payments. This type of 401(k) plan is helping to reduce expenses and expand investment advice for participating TCA members. Each employer that adopts the plan helps to further improve the cost for every other member.  Whether you are using a stand-alone 401(k), SEP, SIMPLE, Traditional IRA or nothing at all - reach out to TCA Affiliate Member Tax Favored Benefits (TFB), the manager of the CRP, for a no obligation consultation for your business. 

Since it is tax season, keep reading to learn more about how the CRP can help you manage your taxes by investing.

Pre-Tax Investing through the CRP

Let’s say you make $150,000 a year. Would you rather pay income tax on that full amount or on $131,000? That’s a no-brainer, right?  If you contribute the maximum of $19,000 to your 401(k), you are reducing your current tax liability. The amount you will save on taxes depends on your marginal tax bracket.  It gets even better if you are 50 or older, as the maximum contribution increases to $24,000.  Remember that you are deferring, not avoiding, income taxes on these accounts. Taxes will become due when you start taking withdrawals from your account.

Utilizing Roth through the CRP

The CRP also offers a Roth 401(k) option. Regardless of how much money you make, the Roth option is available to you. The contribution limit is the same for each type of plan. However, with a Roth, you are making after-tax contributions. This type of plan is attractive to people who believe their tax bracket is lower now than it will be in later years.  A major advantage of the Roth option is that no further taxes are due, even though you may have substantial capital gains over time. All of that money will remain tax-free.

The Chiropractic Retirement Plan

TFB is here to help you define a path to wealth.  We have built a tradition of offering quality advice to business owners.  Our current TCA President, Devin Pettiet, DC., made an impactful statement at the legislative conference in Austin last month.  He asked, “Do you know who needs help dealing with back pain? EVERYONE!”

The same applies to the service offered through the CRP.  Do you know who needs access to quality financial advice? The answer is EVERYONE!  Please take advantage of this opportunity and contact TFB.

For more information, email advisor Nicholas M. Boyd at [email protected] or call 800-683-3440.