WHY DOES SECTION 664 AND SOCIAL SECHARITY SOUND LIKE SOCIAL SECURITY?
We want people to recognize the similarity. They are similar in function but different in outcome.
SOCIAL SECHARITY
- Social benefit
- Enacted by the US Congress more than 50 years ago
- Voluntary gift to create personal income
- Leaves everything in your community
- Meant to supplement income for life
- Based on a defined contribution
- Benefits are unlimited
- Has great flexibility
- Income is paid by a qualified trust
- Can receive non cash assets such as real estate, listed stock, closely held companies, intellectual property, etc
- Can be used as disability benefits
- Can provide a widow/er income regardless of the age of children and/or the widow/er
- Can provide income to second generation and beyond
- Can be used to reduce income tax
- Can be used to defer, reduce, or eliminate capital gains tax
- Can be used in estate tax planning
- Can be used in business succession planning
- Can be used to endow non-governmental organizations
- Can be practiced as a non-governmental occupation
- Is a problem solver for Congress
SOCIAL SECURITY
- Social benefit
- Enacted by the US Congress more than 50 years ago
- Mandatory tax to create income
- Leaves nothing in your community
- Meant to supplement income for life
- Defined benefit based on contributions
- Benefits are limited
- Has no flexibility
- Income is paid by the US Government
- Requires wages and cash withdrawal
- Provides disability benefits
- Cannot provide a widow/er income if there are no children under 16 and before widow/er reaches age 60
- Cannot provide income to second generation and beyond
- Cannot be used to reduce income tax
- Cannot be used to defer, reduce, or eliminate capital gains tax
- Cannot be used in estate tax planning
- Cannot be used in business succession planning
- Cannot be used to endow non-governmental organizations
- Planning cannot be practiced as a non-governmental occupation
- A problem to solve by Congress
