AT TORNE Y F E E P RODUCTS
Stabilize Future Income
Invest, Save and Grow
Whether you wish to defer taxes on your fees, create guaranteed future income or creatively add to your retirement portfolio, structuring fees may provide an excellent opportunity for you to achieve your goals. Since you cannot afford to make the wrong choice, Ringler’s objective settlement advisors vet all of the different attorney fee structure products and guide you to the right choice for your situation.
AT TORNE Y F E E P RODUCT B ENE F I TS
Attorneys who want to invest in their financial future can look to Ringler for help in structuring attorney fees as well as their clients’ settlement dollars. Using a fee structure, all or part of the attorney fees associated with a case can be deferred pre-tax and paid over time. With such a structure, attorneys can receive the same tax-deferral benefits as a Qualified Pension Plan without the hassle of having to adhere to those requirements. Attorneys can defer taxes on their fees, as well as the interest that it earns, until the year in which payment is actually received from the fee structure. In addition, spreading fees over several years avoids a higher tax
bracket and may allow the money saved in taxes to be invested at little or no risk. Structured attorney fees work very much like a non-qualified deferred compensation plan. At the time the case is settled, the taxes that would usually be paid on the attorney fees are deferred. When payments of the fees are eventually received, the entire amount distributed during a year is taxable for that year. Based upon a taxpayer’s tax bracket, there may be some distinct tax advantages to entering into this type of arrangement, as opposed to being taxed on the entire attorney fee in the year the fee was earned and investing it after tax.
Key Reasons to Structure Your Attorney Fees
• Pre-tax investment
• Deferring compensation could mean less income lost to taxes • The Alternative Minimum Tax (AMT) can potentially be avoided • Gives custom cash flow management and allows the client to tailor his/her own income stream
OBJ ECTIVE SETTLEMENT ADVI SORS
RinglerAssociatesdonotendorseanyproductsnorprovide tax, legalorfinancialadvice.Associates,however,may receive compensationwhen recommendingproductsandservices. It is recommended thatclientsseekadditionalprofessional advicewhenmakingdecisionswith tax, legalorfinancial implications. © Ringler 2018
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