# SavingsMax Tax Strategy Planning
## Fee Proposal — CLJ Plumbing

**Client:** CLJ Plumbing
**Plan year:** 2026
**Plan reference #:** SM-CLJ-2026-001
**Prepared by:** Rex (Tax Strategist) for Jimmie Needles, J2 Bookkeeping
**Date prepared:** 2026-05-23
**Companion document:** `SavingsMax_CLJ_Strategy_Memo_2026.md`

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## Engagement summary

The accompanying Strategy Memo identifies tax planning opportunities estimated to deliver **$22,000 – $28,000 in annual federal tax savings** plus a potential **one-time savings of $3,000 – $8,000** from vehicle depreciation catch-up.

This Fee Proposal sets out the SavingsMax fees that apply when you engage one or more of the recommended strategies.

**Fee structure:** SavingsMax fees are calculated as **12% of the estimated tax savings** each strategy is projected to deliver. Fees apply per strategy accepted, payable upon engagement. The full fee is charged regardless of which professional (your CPA, EA, attorney, plan administrator, or other partner) ultimately executes the strategy.

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## Strategy-by-strategy fees

### Recurring strategies (annual)

| Strategy | Estimated Annual Tax Savings | SavingsMax Fee (12%) | Net Annual Benefit |
|----------|------------------------------|---------------------|---------------------|
| **1. S-Corp Election** (Form 2553 + payroll setup + reasonable comp study) | $10,000 – $13,000 | **$1,380** *(based on midpoint $11,500)* | $9,620 – $11,620 |
| **2. Solo 401(k) Retirement Plan** (or SEP-IRA fallback) | $10,000 – $14,000 | **$1,440** *(based on midpoint $12,000)* | $8,560 – $12,560 |
| **3. Accountable Plan** (paired with S-Corp) | $1,100 – $2,400 | **$210** *(based on midpoint $1,750)* | $890 – $2,190 |
| **4. Augusta Rule** (§280A(g) home rental to business, ≤14 days/yr) | $900 – $1,200 | **$126** *(based on midpoint $1,050)* | $774 – $1,074 |
| **Recurring subtotal** | **$22,000 – $30,600 / year** | **$3,156 / year** | **$18,844 – $27,444 / year** |

### One-time strategies

| Strategy | Estimated One-Time Tax Savings | SavingsMax Fee (12%) | Net One-Time Benefit |
|----------|--------------------------------|---------------------|----------------------|
| **5. Vehicle Depreciation Review / §179 Catch-Up** | $3,000 – $8,000 (one-time, if applicable) | **$660** *(based on midpoint $5,500)* | $2,340 – $7,340 |

### Conditional strategies (eligibility-dependent)

| Strategy | Estimated Annual Tax Savings | SavingsMax Fee (12%) | Net Annual Benefit | Condition |
|----------|------------------------------|---------------------|---------------------|-----------|
| **6. HSA Contribution** | $2,000 – $2,300 | **$258** *(based on midpoint $2,150)* | $1,742 – $2,042 | Requires HDHP enrollment — TBD |

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## Total package summary

| Package element | Estimated Savings | SavingsMax Fee | Net Benefit |
|------------------|-------------------|----------------|-------------|
| Recurring annual savings (Strategies 1–4) | $22,000 – $30,600 | $3,156 | $18,844 – $27,444 |
| One-time savings (Strategy 5, if applicable) | $3,000 – $8,000 | $660 | $2,340 – $7,340 |
| Conditional annual savings (Strategy 6, if HDHP-eligible) | $2,000 – $2,300 | $258 | $1,742 – $2,042 |
| **TOTAL (full package, year 1)** | **$27,000 – $40,900** | **$4,074** | **$22,926 – $36,826** |
| **TOTAL (recurring, year 2+)** | **$24,000 – $32,900** | **$3,414** | **$20,586 – $29,486** |

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## Strategy acceptance

Please indicate which strategies you wish to engage. Each strategy is an independent decision — you may accept all, some, or none.

| Strategy | SavingsMax Fee | ☐ Accept | ☐ Decline |
|----------|---------------|----------|-----------|
| 1. S-Corp Election | $1,380 | ☐ | ☐ |
| 2. Solo 401(k) Retirement Plan (or SEP-IRA fallback) | $1,440 | ☐ | ☐ |
| 3. Accountable Plan | $210 | ☐ | ☐ |
| 4. Augusta Rule | $126 | ☐ | ☐ |
| 5. Vehicle Depreciation Review | $660 | ☐ | ☐ |
| 6. HSA Contribution *(if HDHP-eligible)* | $258 | ☐ | ☐ |
| **Total accepted fees** | $______ | | |

**Payment terms:** SavingsMax fees are billed at engagement of each strategy. J2 Bookkeeping issues invoices through standard billing channels. Fees are not contingent on the actual final tax savings realized — they are based on the projected savings as documented in the Strategy Memo.

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## Signatures

**Client (CLJ Plumbing):**

Signature: ____________________________ Date: ___________

Print name: ____________________________

Title: ____________________________

**SavingsMax Tax Strategy Planning (J2 Bookkeeping):**

Signature: ____________________________ Date: ___________

Print name: Jimmie Needles

Title: Principal, J2 Bookkeeping / SavingsMax Tax Strategy Planning

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## Disclaimer

> Estimated tax savings shown in this Fee Proposal are projections based on the assumptions stated in the accompanying Strategy Memo. Actual savings will be determined by the final filed tax return for the engagement year and may vary materially based on facts, circumstances, or tax law changes not currently known to SavingsMax.
>
> **SavingsMax fees are billed based on projected savings, not actual realized savings.** The fee structure reflects the value of the strategy work — research, analysis, modeling, and recommendations — provided by SavingsMax. Implementation of each strategy is performed by your CPA, EA, attorney, plan administrator, or other professional of record. The full SavingsMax fee applies regardless of which professional executes the strategy.
>
> SavingsMax is operated by J2 Bookkeeping. SavingsMax does not prepare tax returns, render tax advice as a return preparer, or represent clients before the Internal Revenue Service. All tax positions recommended by SavingsMax must be reviewed and implemented by your CPA, EA, or other licensed tax professional of record.

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## §A — Internal Notes (Not for Client)

### Pricing math sanity check
- **Total fee if full package accepted, year 1:** $4,074
- **Total net benefit to client, year 1:** $22,926 – $36,826
- **Effective "return on fee":** 5.6x – 9.0x in year 1
- **Effective "return on fee" recurring (year 2+):** 6.0x – 8.6x

This is a strong value proposition. The 12%-of-savings model effectively means the client keeps 88% of the upside while SavingsMax captures real revenue. CLJ at $370K NI is in the optimal income band for this fee structure — high enough that absolute savings are meaningful, low enough that strategies aren't bottlenecked by phase-out limits.

### Fee status tracking
Per Ledger §5.3, fee status flags for the SavingsMax internal pipeline:
- **Identified** — recommended in memo (current state for all 6 strategies)
- **Proposed** — included in this Fee Proposal (current state once client receives the proposal)
- **Accepted** — client signs the acceptance line for that strategy
- **Declined** — client passes on the strategy (re-pitch candidate in next planning cycle)
- **Executed** — implementation partner confirms strategy is in place (Jimmie marks manually)

This Fee Proposal locks the "Proposed" state for all 6 strategies. Re-engagement at year-end if any are declined.

### Re-pitch opportunities (if declined)
- **S-Corp election** if declined in 2026 → re-pitch with TY2027 income projection (likely higher than TY2026, making savings even bigger). Election deadline March 15, 2027 for TY2027.
- **Solo 401(k)** if declined → re-pitch quarterly as retirement runway shrinks (every year deferred is compounding lost)
- **Vehicle depreciation** if declined → cannot re-pitch — must claim in the year applicable (Form 3115 has its own rules)
- **HSA** if not eligible → revisit during open enrollment in fall 2026

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**End of Fee Proposal.**