Structure a Qualified Overseas Pension Plan to be legally compliant in the United States, for tax deferred accumulation of offshore assets. Some of the most important benefits of utilizing Pension Plans are as follows:
- The assets held in the Qualified Employee Retirement Income Security Act (ERISA) Plan are exempt from creditor claims (except for IRS tax liens and certain forms of spousal support).
If a creditor obtains a judgment against you and seeks to collect any assets held in your plan’s trust, they cannot do so. This includes if you were placed in bankruptcy under any Chapter of the Code, the bankruptcy judge and or trustee cannot seize assets owned by your pension plan trust.
- All earnings such as rents, royalties, interest, dividends earned by the pension plan trust assets are not subject to current taxes until you draw them out of the Plan. You can withdraw funds with a 10% penalty if you are 58 years of age or younger or after the age of 59 1/2, there is no penalty but the amounts drawn down are subject to being taxed similar to the tax you would be liable for if this was paid to you as a salary. You are required to start to withdraw these funds out over the life expectancy as the IRS table determines. Draws are required at age 72.
- You can borrow up to $50,000.00 personally from the Plan but the repayment term must be amortized over 60 months at a minimum interest rate equal to the 5-year treasury bill rate (currently .22 of 1%).
- One of the best uses of the Pension Plan is when you make an investment (which can be leveraged subject to certain rules) and all the capital gains are also tax deferred.
Needless to say, compounding your investment returns works really well when you don’t have taxes to pay.
It takes approximately 45 days to get both the sponsoring C Corp or LLC formed and the Pension Plan set up for use.
We also structure investments that are Plan Qualified being Capital Asset Purchases (real estate, mortgage notes vs gold coins and certain stocks and publicly traded debt instruments). Some of these investments are done in conjunction with other firms. Some clients want their Plan Assets in very safe income rental properties, first mortgage notes on rental properties and some in capital appreciation assets wherein we buy distressed bank assets, renovate them and either hold and rent them or resell in the market.
Please contact within to learn more about a Qualified Overseas Pension Plan.