Private Retirement Plans (PRPs)
Private Retirement Plans: A Powerful Tool for Wealth Preservation
In the last decade, Private Retirement Plans (PRPs) have become one of the most effective strategies for protecting and preserving wealth in California. PRPs offer unmatched security and financial advantages for individuals building private equity, business interests, real estate portfolios, or other investments for retirement.
Structured under California state creditor law, PRPs ensure that all funds, distributions, and death benefits remain
exempt from liens and seizures, even in bankruptcy or creditor lawsuits. At BarthCalderon LLP, we help clients create robust PRPs that not only safeguard assets but also capitalize on significant tax benefits.
What Are Private Retirement Plans (PRPs)?
PRPs are programs specifically designed to protect retirement assets from creditors while offering financial growth opportunities. These plans:
- Provide protection from creditor lawsuits and bankruptcy filings.
- Ensure all assets, earnings, gains, and future values remain protected, even after disbursement.
- Secure lifetime benefits for participants and death benefits for heirs.
Benefits of PRPs
- Safer:
- PRPs operate under exemption rights, without the need to transfer or gift assets, making them highly secure.
- Stronger:
- PRPs protect assets throughout their accumulation phase and even after disbursement, ensuring financial security for you and your heirs.
- Cost-Efficient:
- PRPs can generate savings and tax advantages that turn the program into a profit center. Key tax benefits include:
- Tax Deductions
- Tax Deferrals
- Tax Credits
Management Requirements for PRPs
To be legally effective and protected, PRPs must meet specific requirements:
- Primary Purpose: The plan must be created primarily for retirement, not as a strategy to evade creditors.
- Actuarial Plan: A structured plan with a solid actuarial basis for funding must be in place.
- Participant Trust: Each participant must have an individual trust specifying its tax purpose.
- Independent Trustee: The plan must be managed by an independent trustee.
- Plan Administrator: An independent administrator must oversee the plan to ensure compliance.
At BarthCalderon LLP, we ensure these critical components are present in your PRP, enhancing its effectiveness and legal standing.
Partnering with Industry Leaders
We have partnered with TRUST-CFO®, an industry leader in PRP administration. Their comprehensive services include:
- Initial Analysis: Evaluate funding options and assess your current protections.
- Annual Benchmarking: Ensure ongoing compliance and effectiveness of your plan.
- Future Plan Testing: Maximize plan strength and ensure resilience in case of legal challenges.
Find Out More About PRPs Today
Are you fully leveraging the creditor and tax exemption rights available to you? Don’t risk asset seizure, erosion, or loss. Contact BarthCalderon LLP to evaluate your circumstances and discover how PRPs can secure your financial future.