Are you taking advantage of all the available opportunities to hold on to the income you’re acquiring?
As an NFL player, you’re in the highest tax rate. That means with your endorsement deals and appearances that 40-50% of that income is going to go to the IRS. Are you taking advantage of all the available opportunities to hold on to the income you’re acquiring?
This week, Zach is joined by Aaron Goldberg, CFP®, fellow AWM Capital colleague and former PGA, Korn Ferry, and Canada Tour golfer, to discuss some of the biggest tax savings that they’ve seen professional athletes miss out on.
An important distinction on why the SEP IRA is inferior is the ability to do non-deductible IRA contributions and then later convert them to a Roth. You cannot directly contribute to a Roth because of income phaseouts but Roth accounts can grow tax-free and then be withdrawn with no taxes later. The Individual 401k can exist and does not affect the backdoor Roth strategy as it’s commonly known. For athletes, the SEP IRA is an indication the advisor or CPA is not experienced with the unique circumstances and income of athletes. If you would like more detail check out our blog.
Episode Highlights