In a recent Accounting Today article, Dan Kravitz provides insight on how top-earning service professionals can utilize cash balance plans to lower their tax bills. The Treasury Department recently proposed new regulations that would prohibit planning techniques such as the “crack and pack” — where business owners split their firms into different entities to lower their tax bills. Kravitz said his firm, a specialist in defined-benefit plans for small businesses, is actively marketing pensions as a way for service professionals to get around the new rules.
