The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

• How do you define retirement? The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

• SELF-DIRECTED 401 TRUST (Tax Deferred option)

• SELF-DIRECTED IRA

• SELF-DIRECTED 401 TRUST (ROTH option)

• Cash-out your retirement funds, pay the applicable Federal & State income tax plus the premature distribution penalty

• The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from the UBIT/UDFI tax until the funds are disbursed to the account owner.

• CONTROL YOUR FUNDS

• CREATE TAX-LEVERAGE

The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

The SELF-DIRECTED 401 TRUST is the only structure under the Internal Revenue Code that exempts "leveraged" Passive real estate transactions from ALL taxes until the funds are disbursed to the account owner.

[1] "FORWARD-LOOKING" PROJECTIONS & ESTIMATES

This illustration contains forward-looking projections & estimates that are inherently uncertain and may not be achieved, either all or in part. More specifically, this proposal assumes that your Plan's investments will generate, incur, or experience assorted levels of compounded growth, cash flows, administrative costs, FEDERAL AND STATE INCOME TAX RATES, etc. that may, or may not come to pass, or may differ from that projected herein which materially, adversely affects your results. SHOULD YOU PROCEED WITH ANY INVESTMENT STRATEGY ILLUSTRATED HEREIN, YOU ARE SOLELY RESPONSIBLE FOR EVALUATING ALL ECONOMIC CONSIDERATIONS WITH RESPECT TO THE SELECTION, MONITORING THE ONGOING PERFORMANCE, AND EXECUTING ANY ACTION THAT MAY BECOME NECESSARY TO ENSURE SUCCESS AND/OR LIMIT (OR PREVENT) FAILURE WITH RESPECT TO ALL INVESTMENTS SO UNDERTAKEN, NOW, AND IN THE FUTURE.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[2] FEDERAL & STATE INCOME TAX RATES

This illustration assumes that your Plan's investments will generate, incur, or experience assorted levels of compounded growth, cash flows, administrative costs, and FEDERAL AND STATE INCOME TAX RATES which may, or may not, actually be achieved. In some cases, such deviations may cause adverse results with respect to the outcomes shown herein.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[3] ADDITIONAL ANNUAL CONTRIBUTIONS

• The benefit, if any, of tax deduction available to the Owner/Employer for ADDITIONAL ANNUAL CONTRIBUTIONS TO THE TRUST (See [3] below) has not been quantified or reflected in this illustration. Such contributions are available on either a Pre-tax (deductible basis), or an After-tax (nondeductible basis) and has the ability to substantially increase the long-term Value-Add inherent in this strategy.

NOTE: A sufficient amount of Net Business Income (Earned Income) is required to undertake such contributions.

• MAXIMUM 2020 TRUST CONTRIBUTION: $57,000 ($63,500 if age 50+), includes the $19,500 ($26,000 if age 50+) Owner Elective Deferral for each you/your Spouse participant.

• MAXIMUM 2019 TRUST CONTRIBUTION: $56,000 ($62,000 if age 50+), includes the $19,000 ($25,000 if age 50+) Owner Elective Deferral for each you/your Spouse participant.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[4] PREMATURE DISTRIBUTION PENALTY

A 10% PREMATURE DISTRIBUTION PENALTY APPLIES IF UNDER AGE 59 1/2 unless Client is eligible to undertake a QDRO (separately from this engagement and subject to an additional fee payable to 3rd-party Legal Counsel).

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[5] "COMPOUNDED CAPITAL"

• Compounding of both the DEFERRED TAX ON ROLLOVER and the REMAINING BALANCE for the no. of years shown is a very material determinant of the Value-Add amount projected with this strategy. Quite simply, the longer the compounded growth of the cashflows from both components occurs uninterrupted inside the Trust (on a NO TAX basis), the original DEFERRED TAX ON ROLLOVER and the REMAINING BALANCE collectively, the COMPOUNDED CAPITAL BASE, increase substantially. Combined with ADDITIONAL ANNUAL CONTRIBUTIONS above, if any, this results in a larger ANNUAL DISTRIBUTION (refer to Charts 1 & 2).

• This amount has not been subjected to tax at this point since the Trust does not generate taxable income provided it remains QUALIFIED.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY"

[6] FEDERAL & STATE TAX RATES

This illustration assumes that your Plan's investments will generate, incur, or experience assorted levels of compounded growth, cash flows, administrative costs, and FEDERAL AND STATE INCOME TAX RATES which may, or may not, actually be achieved. In some cases, such deviations may cause adverse results with respect to the outcomes shown herein.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[7] "DISTRIBUTIONS START"

Distributions start in the year and amount indicated herein. This amount has not yet been subjected to tax at this point since the Trust does not generate taxable income provided it remains QUALIFIED. However, once distributed, tax applies at the Owner/Participant level on Form 1040, as ordinary income. Tax brackets range from 10% to 37%.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[8] LEGACY TRUST YR 11

This is the projected amount of net after-tax wealth remaining the Trust's investments that is available for heirs in the 11th year following the passing of BOTH Taxpayer AND Spouse.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[9] "LIFE EXPECTANCY"

The amount shown is the total distributions over the total years of LIFE EXPECTANCY less the no. of years used to generate COMPOUNDED CAPITAL. This amount has not yet been subjected to tax at this point since the Trust does not generate taxable income provided it remains QUALIFIED.. However, once distributed, tax applies at the Owner/Participant level on Form 1040, as ordinary income. Tax brackets range from 10% to 37%. ANNUAL DISTRIBUTION (AFTER-TAX) shown down below.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[10] OPTION 1: ROLLOVER TO A SELF-DIRECTED 401 TRUST ON A PRE-TAX BASIS, NO TAX IS DUE ON THE ROLLOVER

Funds are invested with no tax paid (i.e. 0% tax rate) IF/UNTIL such funds are liquidated to the participant(s).

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[11] OPTION 2: ROLLOVER TO A SELF-DIRECTED IRA ON A PRE-TAX BASIS, NO TAX IS DUE ON THE ROLLOVER

UBIT/UDFI (Unrelated Debt Financed Income) tax applies on investment income, gains et al that occur while held by the Self-Directed IRA. Ordinary income tax applies to the Recipient if/when funds are liquidated, i.e. tax is ultimately paid twice.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[12] OPTION 3: ROLLOVER TO A SELF-DIRECTED 401 TRUST, THEN UNDERTAKE A TAXABLE CONVERSION TO "TAX-FREE FOREVER" STATUS

• TAX IS PAID NOW ON A CONVERSION from "PRE-TAX" STATUS to "TAX-FREE" STATUS. Thereafter ALL "QUALIFIED" DISTRIBUTIONS ARE TAX-FREE.

• TAX CONSEQUENCES: An in-plan conversion from PRE-TAX STATUS to TAX-FREE STATUS usually results in taxable income to the participant. A typical rollover from a pre-tax account will result in the entire amount of the rollover, including earnings, being included in gross income. The amount includible in gross income for the year of the rollover is calculated as follows:

AMOUNT ROLLED OVER, less any BASIS in the amount transferred.

• Participants may want to increase their tax withholding amount or make an estimated tax payment for the period in which the in-plan "CONVERSION" rollover is completed.

• The additional 10% early withdrawal tax doesn’t apply to the amount of an in-plan rollover. However, the distribution may be taxable and subject to the additional early withdrawal tax if the participant withdraws it from the designated tax-free account within five years (see below).

• QUALIFIED DISTRIBUTIONS are those that occur after the Trust has satisfied a 5 year waiting window and the participant / trustee has reached age 59 1/2, has died, or has become disabled.

• The 5 year waiting period commences on the first day of the Self-directed 401 Trust participant/trustee’s taxable year, usually January 1, for which the participant/trustee first converted Pre-tax funds and/or made a 401 Trust contribution to the non-taxable component of the Trust.

• The 5 year waiting period ends after 5 consecutive years have passed.

• Non-qualified distributions are subject to the pro-rata rule which results in the participant/trustee including a portion of the distribution in taxable income. To determine the non-taxable amount of the distribution, the after-tax employee contributions (salary deferrals) are divided by the entire balance in the Non-taxable component of the 401 Trust. The distribution amount is then multiplied by the result.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[13] OPTION 4: CASH-OUT, TAX IS PAID NOW AND THEREAFTER ON ALL INCOME GENERATED THEREAFTER

Tax is paid on liquidation now, thereafter ALL gains or other income are taxable as applicable:

• §1245 RECAPTURE (Ordinary Income)

• §1250 RECAPTURE (Ordinary Income)

• CAPITAL GAINS

• NET INVESTMENT INCOME TAX

• State income tax if applicable

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[14] "PROJECTED VALUE-ADD OVER 30 YRS"

• This amount is equal to the TOTAL DISTRIBUTIONS (net of estimated personal income taxes paid by the recipient) plus the remaining COMPOUNDED CAPITAL projected to remain available at least until the end of the Client's LIFE EXPECTANCY. Tax has not been considered on the COMPOUNDED CAPITAL since any such tax will likely be paid by Heirs out of significant remaining distributions that will occur over their own collective life expectancy(s).

• PLANNING ALERT: This value does not include the potential significant additional value available via the use of properly structured Beneficiary Trust(s). Doing so facilitates ongoing investment of the original TAX DEFERRAL, i.e. the remaining COMPOUNDED CAPITAL for a period extending over the collective lifetimes of your heirs (e.g. Children & Grand-children -- shown under OPTION 1 LEGACY TRUST, top right).

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".

[15] "MAXIMUM VALUE-ADD"

• This amount represents the MAXIMUM VALUE POSSIBLE OF USING THIS OPTION 1 when solely considering the DEFERRAL TAX (INCL PENALTY) Trust component shown above and its associated compounded growth over the LIFE EXPECTANCY indicated (30 YRS).

• IMPORTANT: The amount further presumes that -0- distributions are taken from the TAX DEFERRAL COMPONENT over the LIFE EXPECTANCY shown. This metric is provided to identify the "top-end" of the Value-add of the Rollover Option AND it's significant tax deferral opportunity for those who may NOT need to access either the 401 Trust corpus (i.e. the initial the deferral/principal") OR the profits related thereto within their lifetime due to having other income streams, including the DISTRIBUTIONS related to the REMAINDER component of the Trust (see Line 4). Such participants often prefer that the maximum amount of Self-Directed 401 Trust funds pass to their heirs in the most tax-efficient manner possible (i.e. -0- tax applies within the Trust). The ability to extend the "investment" use of the initial "tax savings" combined with -0- tax costs incurred with respect to the ongoing investment gains realized by the Trust, can generate enhanced investment returns for many years thereby increasing a family's multi-generational wealth.

ALL SUCH AMOUNTS ARE "TENTATIVE & PRELIMINARY, FOR DISCUSSION PURPOSES ONLY".