In a recent episode of the Concierge CPA Podcast, Jackie Meyer, CPA, the President and Founder of TaxPlanIQ, sat down with Jennifer Baker, owner of Baker Wealth Strategies. Together, they explored high-impact tax planning strategies, discussed the challenges of running a small firm, and shared insights on balancing professional success with personal well-being. Here’s a breakdown of their conversation, focusing on tax deductions for business owners, the best tax deductions for entrepreneurs, and strategies for maximizing retirement income.
You can listen to the full episode here, or on your favorite podcast platform.
One of the core topics Jackie and Jennifer discussed was the power of cash balance plans—a unique retirement strategy particularly beneficial for high-earning business owners. Jennifer described cash balance plans as a “supercharged” version of a 401(k), allowing business owners to make larger contributions, thereby securing substantial tax deductions.
“Think of it as a way to move significant sums into retirement,” Jennifer explained. Unlike traditional defined contribution plans that have annual limits, cash balance plans allow business owners to contribute hundreds of thousands annually, depending on their income and age. For entrepreneurs facing hefty tax bills, this plan can be a game-changer in maximizing retirement income while reducing tax liability.
Jennifer’s firm, Baker Wealth Strategies, specializes in partnering with CPAs to offer comprehensive tax planning services to business clients. Her team helps implement tax-saving strategies like Roth conversions and investments in tax-free “buckets,” making the most of tax deductions for business owners.
This collaborative approach is key. Many CPAs excel in creating tax plans but may need additional support with implementation. By teaming up with wealth advisors, CPAs can ensure their clients not only have the best tax strategies but that these plans are effectively executed. As Jackie noted, clients are more likely to see value in their advisor’s services if they experience tangible savings, reinforcing the importance of tax planning as an integral part of business advisory.
Running a small tax or wealth advisory firm can be exhausting, with burnout rates alarmingly high in the industry. Both Jackie and Jennifer touched on the importance of maintaining a healthy work-life balance to keep the quality of client services high. Jennifer shared her approach, emphasizing how crucial it is to set firm boundaries and leverage technology to streamline operations. Her goal is to be available for her kids’ activities while still delivering top-notch service to her clients.
For CPAs and tax professionals looking to grow without compromising personal life, Jennifer’s advice is to focus on selecting clients who align with your firm’s values. This allows you to maximize efficiency and ensure a rewarding experience for both your clients and yourself. Investing time in refining client relationships not only makes your work more enjoyable but also builds long-term trust and loyalty.
For small business owners, planning for retirement involves balancing business reinvestment with personal savings. Jennifer discussed how she advises her clients to think of retirement planning as part of a holistic financial strategy. While many business owners may feel hesitant to put money into traditional retirement accounts, Jennifer encourages a flexible approach that allows them to invest both in their businesses and their retirement.
In particular, Jennifer’s firm offers strategies such as using indexed universal life insurance policies to transition funds into tax-free vehicles, effectively maximizing retirement income. This approach provides clients with the flexibility they need without compromising future financial security. For entrepreneurs juggling multiple financial goals, these options make retirement planning more approachable and efficient.
Jackie closed the discussion by highlighting the importance of proactive tax planning in today’s fast-evolving industry. She shared how TaxPlanIQ can be a critical tool for tax professionals seeking to offer high-value advisory services to clients. By simplifying the tax planning process and integrating essential strategies, TaxPlanIQ empowers firms to help clients save on taxes while creating opportunities for long-term financial growth.
If you’re ready to grow your firm, enhance client satisfaction, and maximize your own work-life balance, TaxPlanIQ provides the tools to make tax planning a scalable and profitable service. Sign up for a free demo today to see how TaxPlanIQ can support your journey to becoming a proactive, tax-planning-focused firm.