Build Wealth
With Purpose
Four IRS-compliant tax strategies that allow high-income earners and business owners to dramatically reduce their tax exposure — legally, strategically, and permanently.
50+ Years of Financial Expertise
Prosperous Consulting Group brings together decades of combined experience in tax planning, accounting, wealth management, and business strategy. Our team of seasoned professionals has guided thousands of high-income earners and business owners toward financial freedom and lasting prosperity.
Our Mission
To empower individuals, families, and businesses to build wealth with purpose by providing strategic financial guidance, tax-efficient planning, and comprehensive consulting that integrates tax planning, accounting, wealth management, and estate planning into a cohesive strategy for lasting prosperity.
Integrity
We operate with complete transparency and adhere to the highest ethical standards in all client relationships.
Excellence
We deliver meticulous, detail-oriented work that exceeds expectations and stands up to any scrutiny.
Collaboration
We work seamlessly with your existing advisors to ensure all strategies are coordinated and compliant.
Our Areas of Expertise
Tax Planning
Proactive tax strategy development to minimize liability and maximize efficiency.
Accounting
Comprehensive bookkeeping and financial reporting for individuals and businesses.
Tax Filing
Accurate, timely tax return preparation for individuals, partnerships, and corporations.
Wealth Management
Strategic investment planning and portfolio management aligned with your goals.
Estate Planning
Comprehensive planning to protect your legacy and minimize estate taxes.
Business Consulting
Strategic guidance on business structure, growth, and succession planning.
Why Choose Prosperous CG?
Ready to experience the Prosperous CG difference?
Tax Efficiency Planning vs. Traditional Tax Filing
Most high-income earners work with accountants who file their taxes after the year ends. We work alongside your accountant to plan your taxes before the year begins — capturing opportunities that traditional filing can never recover.
Traditional Accounting
- ✗Tax filing after year-end
- ✗Reactive compliance focus
- ✗Limited optimization opportunities
- ✗Deductions based on what occurred
- ✗No strategic planning component
- ✗Missed timing opportunities
Accountants are essential for compliance, but they work with what has already happened.
Tax Efficiency Planning
- ✓Strategic planning before year-end
- ✓Proactive tax optimization
- ✓Multiple strategy combinations
- ✓Intentional income timing & structuring
- ✓Integrated with business decisions
- ✓Maximizes all available deductions
We work with your accountant to shape the year, not just report it.
How Tax Efficiency Planning Works Alongside Your Accountant
Annual Tax Strategy Review
We analyze your income, entity structure, and goals to identify which strategies apply to your situation.
Coordinate with Your Accountant
We work directly with your CPA to model different scenarios and ensure all strategies are properly implemented.
Execute & Monitor
Throughout the year, we ensure strategies are implemented correctly and adjust as your circumstances change.
Significant Tax Savings
Reduce your tax liability by $50K–$300K+ annually depending on your income and business structure.
IRS Compliance
Every strategy is fully compliant with the Internal Revenue Code. No aggressive positions or gray areas.
Integrated Wealth Strategy
Tax efficiency planning integrates with estate planning, business succession, and wealth management.
Ready to see how tax efficiency planning can reduce your tax burden?
Four Proven Strategies for Tax Efficiency & Wealth Preservation
Each strategy below is fully compliant with the IRS tax code and designed specifically for business owners and high-income professionals who are serious about keeping more of what they earn.
Cash Balance Plans
Stack a cash balance plan on top of your existing 401(k) to shelter up to $300,000 or more per year in pre-tax retirement contributions — dramatically reducing your taxable income during peak earning years.
Executive Bonus Plans
Use IRS Section 162 to pay tax-deductible bonuses that fund permanent life insurance policies for key executives — providing tax-deferred cash value accumulation, income-tax-free death benefits, and powerful retention incentives.
TRUEwellness Program
Reduce gross payroll by an average of $14,500 per employee through a compliant Section 125 wellness program — generating $630 per employee in payroll tax relief while enhancing your team's benefits at no additional cost.
Irrevocable Life Insurance Trusts
Remove life insurance death benefits from your taxable estate while providing tax-free liquidity to pay estate taxes, fund business transitions, and equalize wealth distribution among heirs.
Cash Balance Plans
The Defined Benefit Retirement Strategy for High-Income Business Owners
A Cash Balance Plan is a type of defined benefit pension plan that allows business owners and high-income professionals to contribute significantly more than a 401(k) or SEP IRA. Contributions are actuarially determined based on age, compensation, and plan design — and every dollar contributed is tax-deductible to the business while growing tax-deferred until retirement.
A cash balance plan is not a replacement for your existing retirement plan — it is a powerful add-on. Combined with a 401(k) and profit-sharing contribution, total annual deferrals can reach $150,000 to $300,000 or more, depending on your age and income.
Every dollar contributed to a cash balance plan is deductible to the business in the year it is funded. For a business owner in the 37% federal bracket, a $200,000 contribution can translate to $74,000 or more in immediate federal tax savings.
Unlike a 401(k), the older you are, the more you can contribute. A 52-year-old S-Corp owner earning $650,000 who already maxes a 401(k) can potentially add an additional $210,000 through a cash balance plan — in the same tax year.
Most business owners assume the window closes on December 31. In fact, a properly designed cash balance plan can be established after year-end and funded by the tax return due date — including extensions (September 15 for S-Corps; October 15 for Schedule C filers).
A 52-year-old S-Corp owner with $650,000 in net business income who is already maxing a 401(k) at $69,000 can layer a cash balance plan on top for an additional $210,000 in deductible contributions — bringing total retirement deferrals to approximately $279,000 in a single year.
Strategic retirement planning for peak-earning business owners
Plan Comparison: 2026 Contribution Limits
| Plan Type | 2026 Max | Stackable | Age Boost |
|---|---|---|---|
| SEP IRA | $70,000 | — | — |
| Solo 401(k) | $72,000 | — | Catch-up |
| Cash Balance Plan | $300,000+ | ✓ | ✓ |
Ideal Candidate Profile
- Business owners or self-employed professionals earning $300,000+
- Consistent annual profitability with predictable cash flow
- Willingness to commit to a multi-year plan structure
- Already maximizing a 401(k) or SEP IRA
- Seeking to accelerate retirement savings during peak earning years
Selective executive compensation with built-in retention incentives
Single Bonus vs. Double Bonus Structure
Example assumes 35% combined tax bracket. Both structures are fully deductible to the business.
Lisa is a 45-year-old COO who has doubled her company's revenue over three years. The owner establishes a double-bonus plan with a $40,000 annual premium for five years (~$56,400/year company cost).
*Hypothetical illustration only. Not a prediction or guarantee of actual results.
Executive Bonus Plans
Section 162 Life Insurance Strategy for Key Employee Retention
A Section 162 Executive Bonus Plan allows a business to pay tax-deductible bonuses that fund permanent life insurance policies owned by selected key employees. Unlike qualified retirement plans, there is no ERISA compliance burden, no nondiscrimination testing, and no requirement to cover all employees — making it one of the most flexible and powerful executive compensation tools available.
The business pays a bonus to a selected executive. Because the payment qualifies as ordinary and necessary compensation under IRC Section 162, it is fully deductible to the business — just like salary.
The executive reports the bonus as taxable income on their W-2. They owe income and payroll taxes on the amount received — but the company can optionally 'gross up' the bonus to cover that tax liability.
The executive uses the bonus to fund a permanent life insurance policy they personally own — typically whole life or indexed universal life (IUL). The policy builds tax-deferred cash value.
Over time, the policy grows a tax-deferred cash value reserve the executive can access for retirement income. The death benefit passes to beneficiaries income-tax-free under current law.
Key Advantages at a Glance
TRUEwellness Program
A Collaborative Partnership: Prosperous CG + AYG Insurance and Financial Services
Prosperous Consulting Group partners with AYG Insurance and Financial Services to deliver TRUEwellness — the gold standard for value-based coverage. Together, we combine tax strategy expertise with comprehensive wellness program administration to create a seamless solution that reduces payroll taxes while enhancing employee benefits.
Best for companies with 5+ full-time W-2 employees
The TRUEwellness program is designed to maximize tax efficiency and employee benefits for mid-sized and larger organizations with sufficient payroll to generate meaningful savings.
TRUEwellness sets the gold standard for value-based coverage through its compliant Section 125/WHIMPER structure. By enrolling employees in a certified wellness program and routing benefits through a Self-Insured Medical Expense Reimbursement Plan (SIMERP), the program reduces gross payroll by an average of $14,500 per employee — generating immediate payroll tax savings for both the employer and the employee, while simultaneously enhancing the benefits package with comprehensive wellness services.
Works Alongside Your Existing Benefits
TRUEwellness complements your current health insurance and retirement plans — no disruption needed. The program integrates seamlessly with your existing benefits structure, requires minimal administrative changes, and works with your current professionals (HR, payroll, insurance brokers). Easy implementation in 2–4 weeks with ongoing support from both Prosperous CG and AYG.
No Reduction to Employee Take-Home Pay
Employees receive the full suite of wellness benefits at no net cost. Their take-home pay remains unchanged — the program uses pre-tax dollars to fund benefits, meaning employees get more coverage without dipping into their pockets. It's a true win-win: employers save on payroll taxes, employees get enhanced benefits, and no one loses income.
The program operates under a fully compliant Section 125 cafeteria plan structure combined with the SIMERP (Self-Insured Medical Reimbursement Plan) framework, ensuring legal soundness and IRS defensibility. Monthly allotment dollars are used pre-tax for eligible medical services and wellness benefits.
By reducing gross payroll through the SIMERP plan, both the employer and employee reduce their FICA payroll tax obligations simultaneously. Employees' monthly allotment covers preventative care, wellness services, and guaranteed-issue insurance benefits—all with no reduction in take-home pay.
Employees use their monthly allotment to access virtual urgent care, mental health services, prescription management, dental support, chronic disease management, and guaranteed-issue accident, disability, and life insurance—all funded through pre-tax dollars with no impact on take-home pay.
Expanding the benefits package at no additional cost to the company creates a compelling competitive advantage for attracting and retaining top talent in any industry.
Enhance benefits while reducing payroll tax for your entire team
Why This Partnership Works
- Prosperous Consulting Group provides tax strategy expertise to structure the program optimally
- AYG administers the wellness program and manages all compliance requirements
- Seamless coordination ensures maximum tax savings with zero administrative burden
- Ongoing support from both firms ensures program success and employee adoption
Projected Impact by Company Size
| Employees | Payroll Reduction | Tax Relief/yr | Benefits/yr |
|---|---|---|---|
| 10 | $145,000 | $6,300/yr | $12,000/yr |
| 100 | $1,450,000 | $63,000/yr | $120,000/yr |
| 3,000 | $43,500,000 | $1,890,000/yr | $3,600,000/yr |
Figures represent averages based on program data. Individual results may vary.
Ideal for Business Owners Who:
- Have 5 or more full-time W-2 employees on payroll
- Want to reduce FICA payroll taxes for both employer and employees
- Are seeking to enhance benefits without increasing overhead
- Want to attract and retain top talent with a competitive benefits package
- Prefer a compliant, low-maintenance program with expert support
- Want to complement existing benefits without disruption
- Seek easy implementation with no changes to current professional relationships
Irrevocable Life Insurance Trusts
Estate Tax Mitigation & Liquidity Planning Through Permanent Life Insurance
An Irrevocable Life Insurance Trust (ILIT) is a sophisticated estate planning vehicle that removes life insurance death benefits from your taxable estate while providing tax-free liquidity to pay estate taxes, fund business transitions, and equalize wealth distribution among heirs. For high-net-worth individuals and business owners, an ILIT is often the cornerstone of comprehensive estate planning.
Customizable to Your Financial Needs
ILITs are highly customizable structures that can be tailored to your specific financial situation and wealth planning goals. While annual gifts up to the 2026 exclusion amount of $19,000 per recipient qualify as tax-free gifts, your ILIT can be funded with greater contributions using your lifetime gift tax exemption, allowing for more aggressive wealth transfer strategies based on your individual circumstances and objectives.
How an ILIT Works
Trust Creation
Establish an irrevocable trust with a trustee and named beneficiaries (typically spouse and children).
Policy Ownership
The ILIT owns and is the beneficiary of a permanent life insurance policy on the insured's life.
Premium Funding
The insured makes annual gifts to the ILIT (up to annual exclusion limits) to fund premium payments.
Death Benefit Distribution
Upon the insured's death, the death benefit passes to the ILIT tax-free and is distributed per trust terms.
Life insurance proceeds held in an ILIT are excluded from the insured's taxable estate, removing a significant asset from estate tax calculation and preserving wealth for heirs.
Death benefit proceeds provide immediate, tax-free liquidity to pay federal and state estate taxes, preventing forced liquidation of business assets or real estate.
For business owners, ILIT-owned insurance ensures sufficient capital to fund buy-sell agreements, pay off debt, and maintain operations during the transition period.
ILITs enable business owners to equalize inheritances between business-owning and non-business-owning children, ensuring fair distribution of wealth across the family.
Estate Tax Impact Comparison
Example: $5M estate with $2M permanent life insurance policy
| Scenario | Estate Value | Taxable Estate | Est. Tax (40%) |
|---|---|---|---|
| Without ILIT | $5,000,000 | $5,000,000 | $2,000,000 |
| With ILIT | $5,000,000 | $3,500,000 | $1,400,000 |
Assumes 40% federal estate tax rate. State taxes may apply. Figures are illustrative only.
Protect your legacy with tax-efficient estate planning
Key Considerations
- ILITs are irrevocable — once established, they cannot be easily modified or revoked
- The insured must survive 3+ years after funding the trust (Crummey letters required)
- Annual gifts to fund premiums up to $19,000 per recipient (2026) qualify as tax-free gifts; greater contributions can use lifetime exemption
- Requires professional trustee management and annual tax reporting; Crummey letters ensure gifts qualify for annual exclusion
- Works best when combined with other estate planning strategies like wills and powers of attorney
Ideal for Individuals Who:
- Have a net worth exceeding $5–10 million
- Own a business or significant real estate holdings
- Are concerned about federal and state estate taxes
- Want to provide liquidity for heirs without forced asset sales
- Seek to equalize inheritances across multiple children
- Are in excellent health and can qualify for permanent life insurance
Why Work With Prosperous CG
We coordinate with your estate planning attorney and insurance advisor to structure ILITs that maximize tax savings while ensuring proper compliance and trustee management.
- Tax strategy expertise to optimize ILIT structure
- Coordination with your legal and insurance professionals
- Ongoing monitoring of tax law changes and annual exclusion amounts
Why High-Income Earners Can't Afford to Wait
The tax code contains powerful, legal strategies that most business owners never learn about — because their CPA is focused on compliance, not optimization. Every year without a proactive tax strategy is a year of unnecessary wealth transfer to the IRS.
Every strategy presented is grounded in the Internal Revenue Code. These are not loopholes — they are provisions written into the tax law specifically to incentivize retirement savings, employee compensation, and workforce wellness.
These four strategies are not mutually exclusive. A business owner can simultaneously implement a cash balance plan, an executive bonus plan for key employees, the TRUEwellness program, and an ILIT — compounding the total tax benefit across multiple dimensions of income, payroll, and estate planning.
Several of these strategies have annual deadlines tied to your tax filing date. The window to implement a cash balance plan for the prior tax year closes at your return due date — including extensions. ILIT funding and executive bonus timing also require careful planning. Acting early maximizes your options.
Frequently Asked Questions
Get answers to common questions about our tax strategies, implementation, and how they work with your existing business structure.
General Questions
Cash Balance Plans
Executive Bonus Plans
TRUEwellness Program
ILITs & Estate Planning
Implementation & Next Steps
Still have questions? We're here to help.
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Every strategy we present is fully compliant with the Internal Revenue Code. No gray areas, no aggressive positions.
Prosperous Consulting Group empowers individuals, families, and businesses to build wealth with purpose. Visit prosperouscg.com for more information.