Social Secharity vs. Social Security
WHY DOES SECTION 664 AND SOCIAL SECHARITY SOUND LIKE SOCIAL SECURITY?
We want people to recognize the similarity. They are similar in function but different in outcome.
Social Secharity
- Social benefit
- Enacted by the US Congress more than 50 years ago
- Voluntary gift to create personal income
- Leaves everything in your community.
- Meant to supplement income for life.
- Based on a defined contribution
- Benefits are unlimited
- Has great flexibility
- Income is paid by a qualified trust
- Can receive non cash assets such as real estate, listed stock, closely held companies, intellectual property, etc
- Can be used as disability benefits
- Can provide a widow/er income regardless of the age of children and/or the widow/er
- Can provide income to second generation and beyond
- Can be used to reduce income tax
- Can be used to defer, reduce, or eliminate capital gains tax
- Can be used in estate tax planning
- Can be used in business succession planning
- Can be used to endow non-governmental organizations
- Can be practiced as a non-governmental occupation
- Is a problem solver for Congress
Social Security
- Social benefit
- Enacted by the US Congress more than 50 years ago
- Mandatory tax to create income
- Leaves nothing in your community
- Meant to supplement income for life
- Defined benefit based on contributions
- Benefits are limited
- Has no flexibility
- Income is paid by the US Government
Requires wages and cash withdrawal
- Provides disability benefits
- Cannot provide a widow/er income if there are no children under 16 and before widow/er reaches age 60
- Cannot provide income to second generation and beyond
- Cannot be used to reduce income tax
- Cannot be used to defer, reduce, or eliminate capital gains tax
- Cannot be used in estate tax planning
- Cannot be used in business succession planning
- Cannot be used to endow non-governmental organizations
- Planning cannot be practiced as a non-governmental occupation
- A problem to solve by Congress