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Bernard Reisz

CPA, CPCU, ACI
Investing, Taxes, Small Business
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“As the Principal of ReSure Financial Advisors, Bernard Reisz is committed to putting his clients in control of their finances and future by integrating all aspects of their financial profile.”
Firm:

ReSure Financial Advisors LLC

Job Title:

Principal

Biography:

Bernard Reisz's deep and broad experience in corporate and personal finance enables him to provide clients with comprehensive services - an alternative to a fragmented financial profile. He consistently meets people whose finances are composed of a patchwork of financial products sold to them. As an alternative to selling products and services, Bernard and his team leverage academic research and analytical rigor to empower clients to choose the strategies that suit them best.

Bernard and his team constantly research new approaches to wealth management. There are an overwhelming array of products and strategies available and "you don't know what you don't know." They do the "knowing" for clients and create a financial plan that they'll be confident about. Incorporating risk management and insurance, tax strategy, asset management, and financial planning gives clients the framework to grow their wealth with minimal risk.

For traditional securities investments - equities and fixed income - Bernard and his team recommend investment strategies that are backed by decades of academic research and a proven track record. For alternatives, such as real estate, private lending, private equity, and tax liens, leverage their knowledge of unique tax vehicles to profitably invest.

Education:

BS, Business with Accounting Concentration, Excelsior College

Fee Structure:

Asset-Based

CRD Number:

289346

Insurance License:

#1334745

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September 2017
    Retirement Plans, Retirement Savings

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    IRAs, Taxes
How can one contribute to a Roth IRA for a child?
45% of people found this answer helpful

Amazing question and powerful strategy!

Contributing to a Roth IRA for a child is a powerful strategy and is definitely doable, but requires an awareness and understanding of the terms listed below. Before getting to that list, let’s understand the power of a child’s Roth IRA.

Roth IRAs allow for totally tax-free growth, as opposed to Traditional IRAs that are only tax deferred but benefit from an upfront tax deduction. Assessing whether to use a Roth IRA vs. a Traditional IRA requires an analysis of the value of an upfront tax deduction of the Traditional IRA, as opposed to the value of tax free earnings. Naturally, the greater the projected investment earnings the more appealing the Roth option. Likewise, the lower the investor's current income tax rate the greater the appeal of a Roth contribution.

For children who have (a) little or no income tax to pay and (b) an additional 20 years of investment compounding growth a Roth IRA is an incredibly powerful vehicle. A no brainer, really!

Now, for that list:

  • Gift tax/Transfer Tax
  • College Financial aid/FAFSA
  • FICA, FUTA, SUTA
  • Dependency Exemption
  • Workman’s comp
  • Payroll processing
  • Earned Income
  • Standard Deduction
  • 401k
  • Roth IRA
  • Kiddie Tax
  • Passive Income
  • Portfolio Income
  • Roth IRA contribution limits
  • Income Shifting
  • Self-directed IRA
  • Solo 401(k)

I won’t get into too much detail in this post so as not to overburden you, but the key is to understand that IRA contributions can only be made by those that have earned income – and paying children to do household chores does not qualify. So the first step to making Roth IRA contributions for your child is to get them some earned income, either by having them assist you in your business (assuming you have one) or have them do work for someone else.

Earned income, as opposed to passive income and portfolio income, is generated when the earners material participation resulted in income – whether that be self-employment income or W-2 wages.

Which raises the following question: Do FICA, FUTA, SUTA, and income tax have to be withheld from the child’s earnings? Is Workers’ Compensation insurance required? Is a payroll processing company required? Will my child have to pay income taxes and file an income tax return? Will we be paying tax prep fees? Will I lose the ability to claim them as dependents on my income tax return?

If you’ve got a business and it’s not an S-corp or C-corp, the amazing news is that you can pay your children and not withhold any taxes. Any payments must be reasonable – don’t pay them $5,500 for shredding a few sheets of paper. They must actually do work for your business, which can be paper-shredding, cleaning, or something that they excel at - assisting with social media marketing, such as Facebook, Twitter, and Instagram.

Children are entitled to the standard deduction, so no income tax liability on up to $6,300 of income. Beyond that may want to set-up a Solo 401k.

You'll still get to claim them as dependents on your tax return, unless they provide most of their own financial support. Not likely (wishful thinking).

As you may be able to intuit, there are some incredible tax opportunities available. Some absolutely astounding planning options, which can only be touched upon here.

Get a business. Get your kids involved. Pay them a reasonable wage for services performed. Get a TAX DEDUCTION for paying your child, which would be an ordinary and reasonable business expense. Have your children pay for many of their needs and wants from their wages. Make Roth IRA contribution on their behalf, up to the lower of their earned income or the Roth IRA contribution limits.

Do you realize that by emplying this strategy you're getting a tax deduction for "personal expenses?"

A powerful strategy to consider is forming a self-directed Roth IRA in their names, or a Roth IRA-LLC, which can invest in real estate and many other assets.

An important compliance note: document everything so that your IRS audit proof. As you can see, while these are legitimate strategies, they are ripe for abuse.

September 2017
    Investing, Stocks, Starting Out
What are some general tips for stocks and investing?
0% of people found this answer helpful
September 2017
    Financial Planning, Retirement Savings, 401(k)
Can I move funds from a retirement account provided by a former employer into an individual 401(k)?
0% of people found this answer helpful
September 2017