DEFERRED COMPENSATION PLANS FOR LAWYERS
This option is unlike an annuity as it has a variety of investment options and has more flexibility in terms of timing of income. An example is the best way to illustrate how it works: Let’s assume that in 2018 you want to defer $1 million in contingent legal fees. To maximize liquidity, you can split the $1 million (plus earnings) into 20 quarterly payment buckets (over 5-years). Thirteen (13) months prior to any scheduled payment bucket, you may elect to withdraw it. However, if you don’t need the payment as scheduled, the payment bucket will automatically roll forward to the end of the line. By laddering the payments this way, you can effectively manage your cash-flow and better control the timing of taxation. Using this type of plan, you can effectively have your cake and eat it too! Control the investment options and when you take income.
Contact a Synergy fee deferral expert for a consultation about the best strategy to maximize fee deferral opportunities.
READY TO SCHEDULE A CONSULTATION?
The Synergy Settlements team will work diligently to ensure your case gets the attention it deserves. Contact one of our legal experts and get a professional review of your case today.