The line between amateur athletes and professional athletes is blurred. It used to be: ·       One is paid ·       One is not paid Today it is: ·       Both are paid ·       Each are paid in different ways Welcome to the ever-changing world of amateur sports, where players are (finally) compensated for the revenue they bring to their schools. Something that has taken far too long, but has provided athletes today with financial opportunities not seen by previous players. Those financial opportunities used to all be bundled into three words, NIL. NIL stands for Name, Image, and Likeness and allows athletes to profit off their star power both on and off the field. Today, it has expanded to include the term revenue sharing. Revenue sharing is the process that schools go through to allocate funds from their allocated budget of $20,500,000 towards players. Today's landscape for players includes money coming from both NIL opportunities (think of this as individual things) and revenue sharing (think of this as contracts with the school). With these increased opportunities comes increased responsibility as a player to correctly manage this money. When it comes to athlete wealth management , athletes need to make sure they have a financial team that understands all the details of their situation. In this guide, I break down everything college athletes need to know about maximizing their money moves. I will discuss how taxes work, ways players can maximize their money, and things to look out for. NIL & Revenue Sharing Guide: Contracts The compensation system for college athletes has been the Wild Wild West. Remember, this was entirely new territory just a few years ago. Today, the system has become a bit more regulated, though I would argue perhaps more confusing. Players have two distinct paths when it comes to signing compensation agreements. NIL - These are typically contracts a player signs with a business, and in return for their name, image, and likeness, they are compensated. Revenue Sharing - These are contracts signed directly with the school and based on the ~ 22%, schools can allocate towards athletic programs. To understand what it is like this let's compare these contracts (or offers) to that of a professional sports contract. In professional sports, teams and players work under a collective bargaining agreement. This agreement is one that is agreed to by both the owners (offering the contract) and the players (accepting the contract). Each league, whether it is MLB, NFL, NBA, or the NHL, has unique clauses, structures, and details to their contracts. However, what is consistent is a standard template that must be adhered to. This protects both the ownership group and the players signing the contract. While revenue sharing has elements of a standard process, NIL contracts are still all across the board. Players need to be sure that contracts are just that, contracts, and not just handshake agreements. We have seen players firsthand get burned by deals they thought they had in place, only to find out the money wasn't there. So what do you need to know as an athlete? Not all contracts are created equal It pays to have legal representation You need to understand the pros and cons of an offer Before signing anything, make sure you have protections Look, these contracts are becoming life-changing sums of money. The thing I want you to realize as a player is that this creates an additional responsibility for you to vet these deals. Now look, you don’t have to be the expert here, but you do need to be responsible for what you are signing. I encourage every athlete to run any of these offers past their agent, legal representation, and financial team. This three-pronged approach ensures that you have all of your bases covered. The old adage certainly applies here, trust but verify. This is your career; take ownership of it. Now let's talk money… NIL & Revenue Sharing Guide - Taxes It will be your largest lifetime expense, and it is your responsibility. You are going to hear me say that a lot throughout this guide ~ your responsibility. The reason is simple: I see too many athletes, both amateur and professional, fail to take ownership of their careers. This includes their money. The best outcomes come from taking ownership and combining it with a team specializing in you. Athlete wealth management requires an understanding of how less than .0001% of the population earns money ~ through sports. To understand how to maximize this income, we have to understand how it is taxed. All of this "off the field" income is taxed as 1099 income. This means it is labeled as self-employment income. In simple terms - You as the athlete, are making the money, you are your own little business, thus making it self-employment income. Think about it, you are not working for another company to earn this income, you are working for yourself. 1099 income has several key tax features to understand:   It is subject to self-employment taxes It has unique retirement account options It provides more planning opportunities than traditional (W2) Income Self-Employment Taxes These are taxes imposed by the IRS to cover the costs of Medicare and Social Security. For most W2 earners, they pay one side of this, or 7.65%, while their employer covers the other side of this. For those earning 1099 income, such as NIL money, you cover both sides of this, thus doubling the amount of self-employment taxes paid. That is the bad news, now here is the good news. You can and should be planning around this to minimize this liability. One of the most common ways ($100,000 or more) is by setting up an LLC and electing S Corp tax status. This is something we help many of our college athletes at Moment execute on. The salary you pay yourself is subject to those self-employment taxes, but money above and beyond that is not. Thus saving you a potential 15.3% in self-employment taxes. If you are interested in a deeper dive into tax planning for professional athletes , check out our full guide. Retirement Accounts Ok, so it is not all bad news if you are earning 1099 income. In fact, this type of income allows you to contribute to one of my favorite retirement accounts. A Solo 401(k) Now, a Solo 401(k) is just like a company-sponsored 401(k) except it is restricted to companies that only have one employee (you) and their spouse. The vast majority of college athletes have the ability to open and utilize a Solo 401(k). Here is an example of the power of a Solo 401(k): You are earning $300,000 in NIL money. By maxing out a Solo 401(k) contribution, you reduce your projected taxable income by up to $72,000 (2026 amounts). This could save you north of $20,000 in taxes. Retirement accounts for professional athletes are like a puzzle. To complete the puzzle in the best fashion, you need to start with the core pieces. The Solo 401(k) is that core piece.   Planning Opportunities In 2017, the Trump tax cuts reduced the federal tax rates but also removed many of the deductions athletes (or any W2 earner) could take. Many of those deductions still apply to those earning 1099 income. They include most expenses incurred through earning that income: Legal Fees Agent Fees Travel Costs Remember, you are your own little business, and the tax code in America favors the business owner. NIL & Revenue Sharing Guide – Investments There are a million ways to invest money, but they can all be broken down into two buckets. Ways that work Ways that don’t work In short, the ways that work are often boring, take time, and don’t provide great stories. The ways that don’t…well you can probably figure it out…they make good campfire stories. As an athlete earning off the field income, my recommendation is that you focus on investments that work. You need to treat this money just like we treat money for our professional athletes, as if it could be your last from sports. This means considering the downside of any investment just as much (probably more) than the potential upside. While this guide is not a deep dive into investments, to me, it needs to pass two tests for you to consider it. Test 1 - Does this investment have a track record of working? Test 2 - Does the potential reward equal the amount of risk I am taking? Most investments never pass those two tests, and if they don’t, just move on. Investing is about stacking the odds in your favor. Do that, and you win the game. NIL & Revenue Sharing Guide – Perfect Outcome You need to treat every dollar that you make as if it could be your last from sports. The athletes with the best financial outcomes build this mindset. The reason is simple, you have already defied all the odds to make any money from sports. To keep making money, you have to keep defying the odds. When I think about the athletes who are optimizing this off-the-field income, two words come to mind. Protection - Contracts that protect players' rights and money. Planning - They are proactively planning with a financial team that understands them. Remember, the goal is that NIL income is just the start of your journey to earning money through sports. It is a way for you to start building the habits necessary to maximize further career earnings. Yet, we also must remember it could be your last money earned through sports. The good news is the roadmap doesn’t change, whether it is the beginning or the end of your earning power. If you are a college athlete earning NIL or revenue-sharing money and have questions on how to maximize it, schedule a call with our team. At Moment, our mission has stayed the same since day one. To build the firm that I wanted as a professional athlete. One with a singular focus on helping the people we know the best, athletes and entrepreneurs. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions I received frequently about this topic. How does Moment Private Wealth help college athletes? Moment works to help athletes ensure they have the proper professional on their team first. The second step is helping educate athletes about what they should be considering. The third step is helping athlete implement the necessary strategies, planning, and investment to maximize their NIL earnings. What is the first step to take when receiving an NIL or revenue-sharing contract? My recommendation is to ensure you have the contract reviewed by your attorney or agent. Are all contracts the same? No, each contract is unique, and it is important for athletes to understand what they are agreeing to before signing any NIL contract. How are the earnings taxed? All of the field income is taxed as 1099 or self-employment income. What investments should I consider with off-the-field income? Before considering any investments, players should first consider what accounts further optimize potential tax savings. This is like a puzzle, with the planning coming first and the investments coming second. *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

The 2026 Reality Check Most business owners treat tax season as a historical reporting event. In 2026, if you aren't planning proactively, you are likely overpaying. The One Big Beautiful Bill Act (OBBBA) has restored some massive benefits like 100% Bonus Depreciation but it also introduced "High Earner Penalties" that can strip away your deductions if your Modified AGI exceeds $500,000 . If you are a business owner, this blog is for you. It will outline 5 simple ways to reduce your tax bill in 2026. No fluff, just simple strategies you can implement. Here are each of the strategies we will review in detail in this blog. The Strategy What You Get The 2026 Bottom Line The Retirement "Stack" Massive immediate income deduction Combine 401(k) and Cash Balance plans to shelter $370k+ Entity Optimization Payroll & capital gains savings Utilize S-Corps for SE tax or C-Corps for the $15M QSBS exclusion Real Estate Engine Accelerated "paper" losses Use 100% Bonus Depreciation  and REPS status to offset active income SALT Cap Bypass Unlimited state tax deduction Beat the $40,400 cap phase-out with a Pass-Through Entity Tax (PTET)  election Year-End Timing Tactical control of tax liability Defer revenue and accelerate expenses using Cash Method  accounting 1. Retirement Plans: The "Stacking" Strategy Most business owners under-utilize retirement vehicles, viewing them as simple savings accounts rather than the massive tax-shielding tools they are. By layering different plan types, you can create a "stack" that shelters hundreds of thousands of dollars from the IRS. Solo 401(k) (2026 Limits): Employee Deferral:  $24,500. This is the amount you can contribute as an employee of your own business. Total Limit (Employee + Employer):  $72,000. Your business can contribute additional "employer" funds, typically up to 25% of your compensation, as long as the total doesn't exceed this cap. Catch-Up (Age 50+):  $8,000 (Total: $80,000 ). "Super" Catch-Up (Age 60–63):  Under the latest provisions, if you fall into this specific age bracket, your catch-up limit increases to $11,250, bringing your total potential 401(k) contribution to $83,250 . Defined Benefit / Cash Balance Plans: The Heavy Hitter:  These plans function like a "private pension" for the business owner. They allow for significantly higher contributions than a 401(k) because they are based on the "benefit" you want to receive at retirement rather than a flat contribution cap. 2026 Limits:  For 2026, the maximum annual benefit limit has been raised to $290,000 . The Strategy:  By "stacking" a Cash Balance plan on top of a 401(k), a business owner in their 50s can often deduct $250,000 to $400,000+  in a single year, effectively wiping out the tax bill on a massive portion of their income. The 2026 Advantage: Immediate Vesting:  In many of these owner-only structures, you are 100% "vested" in the contributions from day one, meaning the money is yours immediately and cannot be taken back by the plan. Tax-Deferred Growth:  Every dollar put into these plans grows tax-free until you withdraw it in retirement, which, as many owners find, is often a time when they are in a much lower tax bracket. Your takeaway should be reviewing your retirement plan strategy. If you haven't looked at it for a while, you are likely leaving money on the table. 2. Choosing the Right Engine: S-Corp, Partnership, or C-Corp? Your entity structure isn’t just a legal checkbox, it’s the engine that determines how much of your hard-earned revenue actually lands in your pocket. The One Big Beautiful Bill Act (OBBBA)  has introduced new incentives and traps for 2026, making it critical to match your entity to your long-term goals. S-Corporations: The Cash Flow King For most profitable service businesses and mid-sized operations, the S-Corp remains the gold standard for annual tax savings. Self-Employment Tax Savings:  Unlike a sole proprietorship, where 100% of your profit is hit with a 15.3% self-employment tax, an S-Corp allows you to split income. You pay yourself a "reasonable salary" (subject to payroll tax) and take the rest as a "distribution" (exempt from self-employment tax). The 2026 Math:  If your business clears $400,000 and you set a reasonable salary of $150,000, you only pay social security and medicare taxes on that $150k. The remaining $250k is distributed tax-free from a self-employment perspective, saving you roughly $9,500 to $12,000 every single year . PTET Efficiency:  S-Corps are perfectly positioned to utilize the Pass-Through Entity Tax (PTET)  election, allowing you to bypass the personal SALT cap phase-outs that now kick in at $500,000 of income. Partnerships: Maximum Flexibility If your business has multiple owners or complex profit-sharing arrangements, the Partnership structure offers a level of customization that other entities can't match. Special Allocations:  Unlike S-Corps, which must distribute profit strictly according to ownership percentage, Partnerships can allocate "special" distributions or losses to specific partners. This is a massive tool if one owner needs the tax write-off more than another. Step-Up in Basis:  Partnerships allow for a "Section 754" election. If an owner exits or a new one buys in, the business can "step up" the basis of its assets to the current market value, creating fresh depreciation deductions for the remaining owners. 100% Bonus Depreciation:  Because the OBBBA made 100% bonus depreciation permanent, Partnerships can pass massive immediate write-offs from equipment or real estate directly to partners' personal returns. C-Corporations: The Exit Strategy & The $15M QSBS Exclusion For the first time in decades, the C-Corp is becoming a preferred choice for high-growth businesses due to the massive expansion of Section 1202 , also known as Qualified Small Business Stock (QSBS) . The $15M Windfall:  Under the OBBBA, stock issued after July 4, 2025, now carries an increased federal capital gains exclusion of $15 million  (up from $10M). The $75M Asset Test:  The OBBBA raised the "Gross Asset Test" limit to $75 million , meaning your business can grow much larger and still issue tax-free stock to founders and early employees. Tiered Exclusions:  You no longer need to wait 5 full years for a benefit. The 2026 rules allow for a 50% exclusion after only 3 years  and a 75% exclusion after 4 years . The Double Taxation Trap:  While the C-Corp is the "Holy Grail" for exits, it remains inefficient for businesses that want to distribute annual cash flow. You are taxed at the corporate level, and again at the personal level when you take a dividend. Use a C-Corp if you are building to sell, not if you are building to fund a lifestyle. Don't settle for simply filing your tax return in 2026. Let this be the year that you review your entity structure. After all, this could be the difference in your paying millions of extra dollars to the IRS. 3. Real Estate: Maximizing 100% Bonus Depreciation and REPS For business owners, real estate shouldn't just be an investment; it should be a strategic tax engine. The One Big Beautiful Bill Act (OBBBA)  permanently restored 100% Bonus Depreciation , reversing the previous phase-down and creating a powerful avenue to offset high active income. The "Permanent" 100% Bonus Depreciation Under the OBBBA, the ability to immediately expense the full cost of qualifying property is now a permanent fixture of the tax code. Immediate Write-Offs:  You can deduct 100% of the cost of qualifying equipment and property components with a "useful life" of 20 years or less in the year they are placed in service. Cost Segregation Studies:  This is the technical linchpin. A study identifies and reclassifies portions of your real estate (like lighting, flooring, or landscaping) from a 39-year or 27.5-year recovery period into 5, 7, or 15-year buckets. These accelerated buckets qualify for 100% bonus depreciation, allowing you to front-load decades of deductions into Year 1. Unlocking the "REPS" Shield The most common trap for business owners is having massive "paper losses" from depreciation that they cannot use because the IRS classifies rental activity as "passive." To use these losses to offset your active business income, you must qualify as a Real Estate Professional (REPS) . The 750-Hour Rule:  You (or your spouse, if filing jointly) must spend more than 750 hours per year in real property trades or businesses. The >50% Rule:  You must spend more than half of your total working time in real estate. For many business owners, this is the hardest hurdle. Material Participation:  Beyond REPS status, you must "materially participate" in each specific rental property (typically 100–500 hours depending on the test used) to convert the loss from passive to active. The Short-Term Rental (STR) Loophole If you cannot meet the REPS hour requirements due to your primary business, the STR Loophole  offers a technical workaround. The 7-Day Rule:  If the average stay at your property is 7 days or less, the IRS does not classify it as a "rental activity" under Section 469. Active Offset:  If you materially participate in the STR, the resulting depreciation losses are considered "active" and can offset your W-2 or K-1 income, even if you don't qualify as a full-time Real Estate Professional.3. Real Estate: 100% Bonus Depreciation is Permanent Real estate can be an amazing tax strategy, but you need to make sure you aren't doing it only for tax benefits. A bad real estate deal can wipe you out if you aren't careful. 4. Bypassing the 2026 SALT Cap and the "High Earner" Trap One of the most significant changes under the One Big Beautiful Bill Act (OBBBA)  is the permanent extension of the SALT (State and Local Tax) deduction cap, combined with a temporary "bump" that features a sharp sting for high-income business owners. The 2026 SALT Calculation: $40,400 with a Catch While the headlines celebrate the increase of the SALT cap to $40,400  for the 2026 tax year, the law introduces a "High Earner Penalty" that can quickly erode these benefits. The Phase-Out Threshold:  The $40,400 cap is only fully available to joint filers with a Modified Adjusted Gross Income (MAGI) below $505,000 . The 30% Haircut:  For every dollar your income exceeds this threshold, your SALT deduction is reduced by 30 cents . The Floor:  This phase-out continues until your deduction hits $10,000 , which serves as the permanent floor for the deduction regardless of how high your income goes. The Result:  If your MAGI hits $606,334  or higher, your SALT deduction is effectively reset to the old $10,000 limit, making the "increase" completely irrelevant for many successful business owners. The PTET Strategy: Shifting from Personal to Entity To counter this, business owners should utilize the Pass-Through Entity Tax (PTET)  election, which the OBBBA explicitly left intact. Unlimited Federal Deduction:  When your S-Corp or Partnership makes a PTET election, the state taxes are paid at the entity level  rather than the individual level. Above the Line Benefit:  Because these are considered business expenses, they are 100% deductible  on your federal return and are not subject to the $40,400 personal SALT cap or the $505,000 phase-out. Self-Employment Tax Savings:  For partnerships, paying tax at the entity level reduces the net distributive share of income, which can also lower your self-employment (SE) tax liability. Unlocking the Standard Deduction By moving your state tax burden to the business entity via PTET, you may find that your remaining personal itemized deductions (like mortgage interest) fall below the $32,200 standard deduction  for joint filers. The "Double Dip":  You essentially get to "double dip" by taking a full business deduction for your state taxes via PTET and  still claiming the full standard deduction on your personal return. 2026 Bonus:  Starting in 2026, the OBBBA also allows a new above-the-line charitable deduction  of up to $2,000 for joint filers who do not itemize, further increasing the value of this strategy. If you are in a high-income tax state like California or New York, look into this early in the year. There can be special state rules that you need to follow earlier in the year. 5. Year-End Timing: Cash vs. Accrual and the "Check-in-Hand" Rule If your business has under ~$30M in receipts, you likely qualify for the Cash Method  of accounting. This is arguably the most powerful lever you have for year-end tax planning because it allows you to control the exact moment income is recognized and expenses are deducted. The Power of Revenue Deferral Under the cash method, income is generally not taxed until it is "actually or constructively" received. This creates a massive window for strategic timing as December 31st approaches. The Invoicing Strategy:  If you have a high-income year and want to push tax liability into 2027, delay your final December billings until the very end of the month. If the client doesn't pay until January, that income is not taxable on your 2026 return. The Constructive Receipt Trap:  A common mistake business owners make is holding a check in their desk drawer. If a client hands you a check on December 30th, the IRS considers that "constructive receipt." Even if you don't walk into the bank until January 2nd, that money is taxable in 2026 because it was available to you. To truly defer income, the payment must not be in your possession by midnight on New Year's Eve. Accelerating Expenses: The 12 Month Rule Conversely, you can "pull forward" 2027 expenses into 2026 to lower your current tax bill. Pre-Paying Operations:  You can pre-pay for up to 12 months of insurance, software subscriptions, or rent. As long as the benefit doesn't extend beyond one year, the IRS allows you to deduct the full amount in the year you pay it. Inventory and Supplies:  If you know you’ll need $50,000 in supplies for Q1 of 2027, buying them in late December 2026 creates an immediate deduction. Year-End Bonuses: Timing is Everything Bonuses are a dual-purpose tool: they reward your team and provide a significant tax shield for the business. However, the timing rules differ based on your entity structure. S-Corps and Partnerships:  For owners and "related parties," the bonus must be paid (and the check must be out of your hands) by December 31st to count as a 2026 deduction. C-Corporations:  C-Corps have a slight advantage; they can sometimes deduct bonuses in 2026 even if they aren't paid until early 2027 (specifically within 2.5 months of year-end), provided the obligation was "fixed and determinable" by year-end. The Strategy:  If you are having a banner year, increasing your year-end bonus pool is one of the fastest ways to lower your business's net profit and your personal tax bill while investing back into your company's most valuable asset: your people.5. Mastering the Cash Method Timing If you are a business owner looking to better understand tax planning, schedule a call  and talk with a Moment founder. Not sure what questions to ask, check out this video on 10 questions you should ask when interviewing a financial advisor. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions I received frequently about this topic. 1. Is the SALT cap really $40,000 now? Yes, it is indexed to $40,400  for 2026, but high earners (> $500k AGI) will see this deduction reduced by 30% of the excess income. 2. Can I still use PTET if the SALT cap is higher? Yes. In fact, it is more  important for high earners because the PTET bypasses the new phase-outs that apply to the personal SALT deduction. 3. What is the "Super" catch-up for 401(k)s? Starting in 2025/2026, business owners aged 60, 61, 62, or 63 can contribute an increased catch-up amount (approximately $11,250) instead of the standard $8,000. 4. Does 100% Bonus Depreciation apply to everything? No. It applies to assets with a "useful life" of 20 years or less. It does not apply to the structural building of a rental property, though a Cost Segregation Study  can help you find components that do  qualify. 5. How do I qualify for the $15M QSBS exclusion? You must hold stock in a domestic C-Corp with less than $75M in gross assets  at issuance for at least 5 years. However, the OBBBA now allows for partial exclusions (50–75%) if you sell after only 3 or 4 years. 6. Can I pay my kids to lower my taxes? Yes. You can pay your children for legitimate business work. For 2026, you can pay them up to the standard deduction (~$16,100) tax-free to them, while your business takes a full deduction at your higher tax bracket. 7. When is the deadline for a 2026 Cash Balance Plan? The plan must generally be adopted by your tax filing deadline (including extensions), but it is best practice to have it established by December 31, 2026 , to ensure the deduction is locked in. 8. Is the 1099 reporting threshold still $600? No. The OBBBA officially raised the 1099-NEC reporting threshold to $2,000  for the 2026 tax year. 9. Why should I use the Cash Method instead of Accrual? The Cash Method allows you to control the timing of your income. You only pay taxes when the money hits your bank account, which is better for your business's cash flow. 10. How does the "High Earner Penalty" work on SALT? It is a "haircut" on your deduction. For joint filers, the $40,400 cap is reduced by 30 cents for every dollar your MAGI is over $500,000. This makes the PTET election  the only way to get a full, uncapped state tax deduction. Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

I remember my first big league spring training. The veteran leadership had let us know the Major League Baseball Players Association was coming in the next day for our spring meeting. A naive 18-year-old, I had no idea what that meant or what we would be talking about. That meeting opened my eyes to the sacrifices former players had made to pave the way for current players. Everyone sees the ever-increasing salaries, but what many don't see is the greatest pension allowed under US law. That's right, the MLB pension provides the highest benefits an employer can provide. In this blog, I am going to break down everything major league baseball players need to know about the MLB pension. MLBPA MLB Pension Plan The MLB pension plan dates back to 1947 and is currently the longest-running pension plan in all of professional sports. The plan is one of several benefits MLB players and coaches receive as part of the CBA (Collective Bargaining Agreement) negotiated with MLB owners. The plan has roughly 10,000 participants that can be broken down into three groups ~ active players, retired players, and players receiving benefits. One of the biggest challenges for Major League Baseball players is navigating significant early career earnings with decades as a former player. The MLB pension, which can be taken as early as age 45, helps to bridge the gap for players. Retirement planning for professional athletes requires both planning expertise and niche knowledge to understand all the options athletes have. Here is everything you need to know about the MLB pension. Qualifying for the MLB Pension To qualify for the MLB pension, we must first understand service time. MLB service time is accrued for players who are on the active 26-man roster plus players on the MLB injured list. Players on the 40-man roster but not on the active roster do not accrue service time. To qualify for the MLB pension, a player must have at least 43 days of MLB service time . 43 days of MLB service time equals one-quarter of one full year of service time. One full year of MLB service time is equal to 172 days. Once a player reaches 43 days of MLB service, they become eligible to start collecting future pension benefits. With each additional quarter of MLB service time, a player continues to accrue pension benefits. At 40 quarters or 10 years of service time, a player maxes out MLB pension benefits. MLB Pension Benefits While most pensions are going away, the MLB pension continues to rise with the cost-of-living increases. The MLBPA projects that the yearly pension will rise by ~ 1.8% yearly. Example : A player earning $100,000 in yearly pension benefits can expect to earn $101,800 next year. Players can access the MLB pension at age 45 but at a reduced rate. To receive full pension benefits, a player must delay taking it until age 62. In 2026, the current pension benefits (at age 62) are as follows: 43 days of MLB service time = $7,250 pear 1 year of MLB service = $29,000 per year 5 years of MLB service = $145,000 per year 10 years of MLB service = $290,000 per year At Moment Private Wealth, we provide MLB players with calculations on when it would be most optimal for them to take their pension benefits. MLB Pension Considerations One of the biggest challenges professional athletes face is the length of "retirement". With that average professional athlete retiring before 30 years old, this leaves decades to live off of your career earnings. The MLB pension can help players fill the retirement gap. Understanding pension and league benefits is a critical piece of mapping retirement for professional baseball players. As you begin planning for what a future pension looks like, you need to understand two main factors: Cost of living adjustment - The MLB pension has a COLA increase each year that currently stands at 1.8% per year. This means that your monthly pension amount will increase each year at a rate of 1.8%. Early access adjustments - The MLB pension allows players access as early as age 45, but not without consequences. A full pension, 10 years of MLB service at age 62, is worth $290,000 per year. That same pension accessed at age 45 is worth less than half of that. Whether you accrue 43 days of MLB service time or more than a decade, the MLB pension should be a part of your retirement planning as a Major League Baseball player . You need to understand all the factors and how they affect your overall plan. - While MLB players have countless public benefits, players need to understand the private benefits. Time and time again, we see athletes unaware of the benefits they have, including the MLB pension. I can't stress this enough, but you don't want to be working with a financial team learning on your situation. You want to be working with a specialist in athlete wealth management . Done correctly, these benefits can provide youwith millions of dollars in lifetime benefits. If you are a Major League Baseball player looking to better understand the MLB pension, schedule a call and talk with a Moment founder. Not sure what questions to ask, check out this video on 10 questions you should ask when interviewing a financial advisor. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions I received frequently about this topic. How much is the MLB pension? Players receive pension benefits starting at 43 days of MLB service and maxing out at 10 years of MLB service time. In 2026, the MLB pension maxes out at $290,000 per year. When can players access MLB pension benefits? Players can start accessing MLB pension benefits as early as age 45 with full pension payouts happening at age 62. How does Moment Private Wealth help professional baseball players ? We are specialists in working with professional athletes. We help professional baseball players with income planning, tax planning, risk management, estate planning, and investment management. We also help MLB players navigate the MLBPA benefits plan package including the MLB pension. Does Moment Private Wealth help professional baseball with retirement planning? Yes, outside of navigating MLB pension benefits, Moment Private Wealth helps professional baseball players with tax planning, retirement planning, and optimizing their entire financial life both during and after their playing career. Where can I find out more information about my specific pension benefits? Major League Baseball players can contact the MLBPA for more detailed answers to the MLBPA benefits plan package. *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

Done correctly, players can get more than $16,500,000 in retirement plan benefits, countless tax savings, and access to lifelong health care. Retirement planning for professional athletes is a mix of understanding specific information and how it connects to your life. I had seen the big contract numbers. I had heard of the opportunities Major League Baseball players had. Yet, one thing I didn’t understand was the MLB benefits plan. What benefits do players get? How are those benefits calculated? How do players access those benefits? What things should players be aware of? I remember hearing my agent talk about all the benefits I was getting by being put on the 40-man roster but I didn’t get it. In this article, I am going to break down everything Major League Baseball players need to know about the MLB retirement plan in 2026. MLBPA MLB Retirement Plan To unlock the full benefits of the MLB retirement plan, you must do two things: ·       Be on an MLB 40-man roster ·       Be on an MLB active roster (26 players) Think about this like levels of a game. The first level (40-man roster) unlocks certain benefits. The second level (MLB active roster) unlocks additional benefits. The longer you play at those levels the greater the benefits. The 40-Man Roster Benefits The 40-man roster is the roster of players eligible to be added to the active roster. This is a collection of the team's starters, role players, fill-in pieces, and top prospects. Players who achieve 40-man roster status are eligible for certain employee benefits through the Major League Baseball Players Association. The biggest benefit is the MLB players' “Active” health care plan. This is arguably one of the greatest healthcare plans in the world. It is a privately run plan administered through Aetna. The plan calls for minimal out-of-pocket costs to players. The premiums (cost of the policy) while active on a 40-man roster are covered by the teams. One important note for players to understand is that once they are added to the 40-man roster, it is critical to add all family members. While active players are automatically added upon their addition to the 40-man roster, their families are not. It is the player's responsibility to ensure their family is added. As financial advisors for professional athletes ,  we ensure all players' families are correctly added to the proper forms. Active Roster Benefits The active roster consists of 26 players as of 2026. These are players that are eligible to play in regular-season games. To be on the active roster, you must first be added to the 40-man roster. While healthcare benefits are great, the real benefits kick in for players on the active roster. To understand how players access these benefits, we have to understand MLB service time, how it is calculated, and how it affects players' benefits. MLB Service Time MLB service time is the time a player receives for each day they are on the active roster. While an MLB season is 162 games, service time is calculated based on the number of duty days in a given year. To acquire a “full season” of MLB service time, a player must achieve 172 days on the active roster. For context, the typical MLB season has between 180 and 190 duty days. Why does this matter? The three biggest benefits active players receive are: ·       401(k) Benefits ·       MLB Pension Benefits ·       Healthcare Benefits Post Playing (more on that later) Each one of these benefits starts to kick in based on service time. Here are the key service time figures and benefits received: 1 Day : One day of MLB service time provides players eligibility to contribute that day’s paycheck to the MLB 401(k) Plan. This plan is administered through Vanguard. *Minor League Players are also eligible for 401(k) contributions but there is no team contribution. 43 Days : 43 days of MLB service time is equal to one-quarter of a season. This milestone for a player gives them team contributions to the 401(k) and MLB pension benefits. 172 Days : 172 days of MLB service time gives a player 1 full year of service time. This milestone gets a player closer to arbitration (approximately 3 years of MLB service time) and MLB free agency (6 years of MLB service time). 4 Years : 4 years of MLB service time provide players with access to the health care plan after playing. While it switches and players have to pay the premiums, this is an incredible benefit for retired players with four years or more of service time. 10 Years : 10 years of MLB service time provides players with a full pension. This is the holy grail for any MLB player. The full pension is currently $290,000. - Now that we understand MLB service time and how it effects player’s benefits, let’s dive into the details of each benefit a player can receive. Remember the three biggest benefits active MLB players receive are: The three biggest benefits active players receive are: ·       401(k) Benefits ·       MLB Pension Benefits ·       Healthcare Benefits Post Playing 401(k) Benefits In 2026, a player can contribute $24,500 in “pre-tax” money to his 401(k) plan. This means you receive a tax deduction for his contribution. Example: A player making $1,000,000 contributes $24,500 to the plan and has a taxable income of $975,500 instead of the full $1,000,000. A potential tax savings of more than $8,500, assuming the 37% federal tax bracket. Unlike most company 401(k) plans, the MLB 401(k) plan provides no match. Instead, teams provide direct contributions to players' 401(k) plans. The exact number is calculated based on the luxury tax teams’ pay. *The luxury tax is a calculation based on a team going over certain spending thresholds. So remember, when you see teams like the Mets and Dodgers paying a large luxury tax a portion of that money is coming back to players in the form of team 401(k) contributions. In 2025, teams contributed $17,500 per quarter (43 days) of MLB service time a player had. So, for a player with a full year of MLB service time, they maxed out their 401(k) at $70,000 without having to contribute one dollar of their own money. Players must understand this changes on a yearly basis based on the amount of money teams pay in luxury tax. MLB 401(k) Plan MLB Pension Benefits While most pensions are going away, the MLB pension remains. In fact, it is one of the best in the world. Each year, the pension benefits increase to the highest allowable by law. In 2026, the current pension benefits are as follows: 43 days of MLB service time = $7,250 pear 1 year of MLB service = $29,000 per year 10 years of MLB service = $290,000 per year Players receive these benefits with each quarter (43 days) of MLB service time they acquire. To achieve full pension benefits, players need to wait until age 62. Players do have early access to pension benefits at the age of 45. MLB players need experts in athlete wealth management to provide calculations on when it would be most optimal for them to take their pension benefits. Health Care Benefits While every player added to the 40-man roster is automatically added to the MLB health care plan, certain service time thresholds provide additional benefits. Players who acquire four years of MLB service time are eligible to stay on the health care plan in retirement. Players who choose to stay on the plan are required to cover the premium (cost of the policy) payments. A few key notes on the policy: ·       Enrollment/Changes to the policy are due by opening day. ·       There are three policy options (active, base, and buy down). ·       Each policy option provides varying benefits and premium amounts. ·       If a player elects to move off the plan, he cannot get back on the plan. Players must understand this benefit and how it works. As financial advisors for athletes , we run yearly analyses on the three options for players to ensure our athletes are choosing the correct plan. To understand just how powerful this benefit is for players, let's compare two plans. The first is an open marketplace (Public plan), and the second is the “Buy Down” MLB plan. I use this example because I utilize the “buy down” plan for my family of six. - While MLB players have countless public benefits, it is critical MLB players understand the private benefits. Time and time again, we see athletes unaware of the benefits they have. Athletes must work with a qualified financial team that specializes in working with Major League Baseball players. Remember, done correctly, these benefits can provide millions of dollars in lifetime benefits. In fact, for a player entering the Major Leagues in 2026 and playing for 10 years, these benefits can easily exceed $16,500,000 in lifetime value. - If you are a Major League Baseball player who is looking to better understand the MLBPA benefits, schedule a call, and talk with a Moment founder. Not sure what questions to ask, check out this video on 10 questions you should ask when interviewing a financial advisor. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions I received frequently about this topic. H ow many days does a player need to qualify for b enefits? The majority of benefits, including the MLB pension, start with 43 days of service time on the active roster. H ow does a player qualify for the MLB health care benefits? Pl ayers need to have at least four years of MLB service time in order to stay on the MLB health care plan after retirement. Do players have to pay for health care benefits in retirement ? Yes, players have to pay for health care premiums after their playing career ends. H ow much is the MLB pension in 2026? Full pension in 2026 is $290,000 per year for players who accumulate 10 or more years of MLB service time. A player is cred ited $29,000 per year in pension benefits for one year of MLB service time. At what age can players take the MLB pension? MLB players can take the MLB pension as early as age 45 but to get full pension benefits a player must wait until age 62. Can players roll over the MLB 401(k) in retirement? Retired MLB players can roll over their Vanguard MLB 401(k) plan into an IRA. *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

Let me take you back to my signing day. I was 18 years old. No credit card. No clue how taxes worked. No idea what a “qualified account” was. And suddenly, I was a millionaire. We went out to celebrate with my family at a local ice cream shop. I remember sitting there thinking, "Is this real?" The next morning, I woke up and life went on, but with one major difference. The financial decisions I made from that point on would either set me up or set me back. For a lot of athletes, that moment becomes the start of a slow build toward a lifestyle they can’t sustain. They go from nothing  to everything , and they build it fast. This blog is about why that happens , the mistakes I see athletes make (because I made them too), and how to build your lifestyle intentionally , not reactively. If you haven't already, check out our guide to athlete wealth management as a primer for this blog. Let’s dive in... The Athlete Dilemma Let’s be honest, most athletes didn’t grow up around wealth. So when you go from a per diem in the minors to direct deposits with commas, the instinct is to reward yourself. The new car  (because yours barely made it through college). The custom suit  (because you're finally walking into rooms that demand it). The watch, the place, the vacation, the entourage  ( all of it feels earned). And in many ways, it is. But here’s the problem... Most athletes build permanent lifestyle habits off temporary income. We buy big. We commit big. We assume the money will keep coming. Until it doesn’t. And by the time we realize we’ve overbuilt… It’s hard to unwind. Real Cost of "Leveling Up" You’ve probably heard this before: “If you can buy it twice, you can afford it.” Sounds easy, but consider the money spigot can turn off at any moment. Let me show you what I mean by “hidden costs”... Example: The $2M House $2,000,000 purchase price $40,000/year in property taxes $12,000/year in insurance $25,000/year in maintenance $15,000/year in furnishings/updates That’s $90,000/year  to keep the house running… and we’re not even talking about the mortgage if you didn’t pay cash. Now add in: A luxury car with a $1,500/mo payment Private school tuition for your kids Family travel costs Business class flights (because coach now feels “impossible”) You’ve gone from millionaire to monthly stress in 12 months or less, all because you built your lifestyle too fast.   The Psychology of Being "New Rich"   It’s not just about money. It’s about what money represents . For many of us: It’s a way to feel like we made it. It’s a way to take care of the people who sacrificed for us. It’s a way to prove something ~ to family, to our past, to the world. But here’s what I wish someone had told me early on... You don’t have to prove anything with your purchases. The lifestyle you build early on becomes the floor  you feel like you have to maintain later. Most athletes build that floor way too high and then struggle to sustain it when the checks slow down or stop altogether.   Here are a few frameworks to consider: 1) Know Your Baseball Lifestyle   Ask yourself this simple question: “If the money stopped tomorrow, what would it cost to maintain my lifestyle?” That’s your baseline lifestyle cost . Track it. Own it. Review it monthly. This includes: Mortgage or rent Car payments Insurance Food and travel Family support Taxes (don't forget the taxes) Once you know this number, you’ll know what your lifestyle actually costs, not just what you’re swiping on the card. 2) Separate Rewards from Commitments Not all spending is bad. But it needs to be categorized . I break it down like this: Reward Purchases One-time items to celebrate a win. They don’t create monthly stress. Examples: A Rolex. A trip to Paris. A new suit. Lifestyle Commitments Ongoing expenses that require future income. Examples: Mortgage. Luxury lease. Private school. Staff. A reward purchase is a pat on the back. A commitment is a financial anchor. 3) Build a Lifestyle for Each Season You don’t need to buy the mansion in Year 1. Instead, think in seasons : Rookie Contract = Build financial margin Second Deal = Layer in a few key lifestyle upgrades Major Extension or Exit = Add long-term assets & experiences The more time you give yourself, the more options you have. The more options you have, the more freedom you feel.   The beautiful part about all of this is, it is in your control. You have the opportunity to build and direct your outcome. Yet to do that, it takes real work, real planning, and real focus. As athletes, we have one chance to do this right. My goal is to help every athlete get smarter with their money moves. If you want more ways to do that, check out my YouTube page. If you are ready to get to work, schedule a call with our team. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions received regarding athletes and money: What is the #1 spending mistake athletes make? It is thinking they can build a lifestyle on earned income (contracts) and not saved income (investments). What should my savings percentage as an athlete be? For most athletes, we are targeting between 60%-80% once they are making significant money. What about big one-time purchases? We encourage reward purchases, but we have to remember that these are, in fact one one-time purchases. Do you recommend that athletes buy a house? In most cases, no, and this is because the cost can often be far more than first thought. You add in the fact that most athletes are not in the same city year after year. *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

(How to keep more, protect more, and build what lasts.) If you're an athlete, your career will move faster than most people’s lifetime. Your earning years start earlier. Your peak is shorter. And your transition out of the game? It usually happens while your peers are just starting to hit their stride. That’s why your approach to wealth has to be different. It has to be smarter, more disciplined, and designed around your real timeline — not the one most people follow. At Moment Private Wealth , we often break down an athlete’s financial life into three distinct phases : Foundation : When the money starts coming in. Peak : When you’re earning big and playing at the highest level. Impact : When the game changes — and you start thinking bigger than yourself. Each phase requires a different mindset and a different plan. Here's how to think through each one — and how to avoid the common traps that can derail even the most talented pros. Phase 1: Foundation (Where most mistakes happen.) This phase starts when the income begins to show up — NIL deals, rookie contracts, first bonuses. For many athletes, it’s the first time real money is hitting the account. And that’s where the danger starts. What you should focus on: Building your financial base  — not your lifestyle. Protecting yourself  from the unexpected: injury, lawsuits, bad deals. Learning the basics : taxes, budgeting, and knowing what “after-tax” really means. Assembling your team : financial advisor, CPA, attorney, and someone you trust who’s not afraid to tell you no. What to avoid: Spending like it’s forever. (Spoiler: It’s not.) Assuming a deal is done before the check clears. Letting friends, agents, or brands pressure you into financial decisions. Waiting too long to build habits — lifestyle creep is real and hard to reverse. At this stage, the biggest wins come from what you don’t  do. Don’t overextend. Don’t assume. Don’t wing it. If you can stay disciplined in Phase 1, you’ll give yourself room to grow in Phase 2. Phase 2: Peak This is when you’re at your earning high point. Contracts are bigger. Deals are more complex. Everyone wants to be in your inner circle. This phase can be incredibly rewarding — and incredibly risky. Because the faster the money comes in, the easier it is to lose track of where it’s going. What you should focus on: Sustainable growth  — not just fast returns. Strategic diversification : real estate, equity, business interests, passive income. Advanced tax planning: strategy, structure, and types of income. Structuring your lifestyle  around cash flow , not net worth. This is also the time to start preparing for the next phase — even if it feels far away. What to avoid: Making emotional investment decisions. (Friends don’t always make good business partners.) Buying liabilities that look like assets. Forgetting that endorsements, sponsorships, and playing time aren’t guaranteed forever. Ignoring estate planning — especially if you have kids or are supporting family. Your goal in Phase 2 isn’t just to grow your money. It’s to build options . And the best time to do that? When things are going well. Phase 3: Impact (Where the real wealth is built). This is where the game changes. Maybe you’ve retired. Maybe you’ve stepped away from pro sports or pivoted into something new. Regardless of how you got here, the priorities shift. In this phase, the income slows down — but the opportunities open up. What you should focus on: Replacing active income  with income-producing assets or business ventures. Protecting your downside : lower risk, lower fees, lower drama. Maintaining a smart lifestyle  that your post-career income can support. Defining your legacy : not just financially, but through what you build and give. This phase is also where identity  becomes a huge factor. We’ve seen it time and time again — the mental transition can be just as challenging as the financial one. What to avoid: Hanging on to old spending patterns with new income levels. Selling assets under pressure. Trying to “prove you’re still winning” with risky ventures. Losing track of the long game. Wealth isn’t what you make. It’s what you keep — what you build and the impact you have. The athletes who win in this phase are the ones who prepared before they had to. Why This Matters More Than You Think Athletes operate on a compressed financial timeline . You start earlier, earn more, and exit faster than just about any other profession. Which means there’s less room for error. One bad investment. One contract dispute. One year of unchecked spending — and you’re starting over. But when you treat your wealth journey like a career — with training, strategy, and accountability — the odds shift in your favor. Big time. These 3 phases are just the beginning of your financial journey. Wealth Management for Professional Athletes doesn't happen overnight. But if done right on the upfront, you will be better off than 99.9% of your teammates. ___________________________________________________________________________________________________________ If you are an athlete and want to better understand how to manage your wealth, schedule a call with a Moment Founder . Not sure what questions to ask, check out this video on 10 questions you should ask when interviewing a financial advisor. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions I received frequently about this topic. How do I know if I have the right team in place?    It starts with asking the right questions. "How will you help me reach my goals? Who else have you worked with? How have you helped athletes just like me?" They need to be able these questions with direct answers. How do I know which phase I am in?   Start by asking: Where is your income coming from, and how stable is it? Are you still building your foundation, maximizing peak earnings, or transitioning into a new chapter? The phase you're in shapes the financial decisions you should be making right now. What’s the most important move I can make in my current phase? It depends on where you are. In Foundation, it's about protection and habits. In Peak, it’s about planning for life after the game. In Impact, it’s about sustainability. Each phase has its own set of priorities — knowing yours is the first step. Can I skip a phase if I am already earning big money? No — and skipping the Foundation phase is one of the biggest mistakes we see. Even if you're making great money, you still need the basics in place: cash flow plan, protection, and a smart team around you. What is the first step I should take?    Set up a call with a financial advisor at Moment Private Wealth who specializes wealth management for professional athletes. ___________________________________________________________________________________________________________ *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

You've signed the deal. You're finally getting paid for what you bring to the game. You might have $500,000 coming in. Maybe $750,000. Maybe even a $1,000,000 NIL deal with incentives. But here's the part that gets lost in all those zeros: It's not what you make. It's what you keep. And more importantly - what you build with it. NIL Isn't a Scholarship. It's a Business. Believe it or not, you are a CEO now. Whether you're a quarterback, point guard, starting pitcher, NIL has turned you into a business owner overnight. That means new rules - financial, legal, tax, and investment rules - that weren't part of the playbook in the locker room. In this article, I am going to break down a clear roadmap built for athletes like you who are serious about building wealth. Where Most NIL Athletes Go Wrong Let's start here: You grew up in the state of California and are the starting quarterback for your high school. You sign a $1,000,000 NIL deal heading to a top 10 program. After agent fees (say 3% - 5%), taxes, expenses, and not knowing how to handle it... You might walk away with less than $515,000. - if you're lucky. Here's how (keep in mind, this is a complex example and other factors are involved): Item Amount Agent Fee (5%) $50,000 S Corp Salary $200,000 Distributions $750,000 Payroll Taxes on Salary (15.3%) ~$30,600 Federal Income Tax (blended) ~$285,000 CA State Tax (blended) ~$90,000 Legal/Business Setup $10,000–$20,000 Total Taxes & Fees ~$465,600 Take-Home (After Tax & Fees) ~$514,400 You can see where this is going. NIL athletes are cashing massive checks - but without a plan, that $1,000,000 can become $0 really quickly. The 5 Pillars of NIL Wealth There's a smarter way. One that protects your money, your brand, and your future. Here are the 5 Pillars we recommend building for every high-earning NIL athlete at Moment Private Wealth : Cash Flow Planning: Tell Your Money Where to Go You have earned that $1,000,000 NIL paycheck. But to keep it, you have to do some planning. Without a cash flow plan, your money will disappear - to taxes, spending, or just lifestyle creep. Here's how to stay in control: Use the 50/30/20 Rule (or better): 50% Needs (housing, food, taxes) 30% Investing/Saving 20% Wants (travel, fun, clothes) Create automatic transfers to your savings and investment accounts each month - PAY YOURSELF FIRST! Track your spending weekly or monthly - if you don't know where your cash is going, you are setting yourself up for failure. The key is to build your lifestyle around budget - not your NIL deal. Tax Planning: The Silent Killer Uncle Sam wants his share in your success - and trust me, he is not patient. Most NIL athletes don't know: NIL income is considered self-employment income That means you're responsible for federal, state, AND self-employment taxes The IRS doesn't care that you're 20 years old with a marketing major Here is what you should do: Pay quarterly estimated taxes Maximize deductions - business expenses, travel, legal, meals (within IRS rules) Hire a CPA who understands athlete tax law Use retirement accounts (Roth IRA, Solo 401(k)) to reduce taxable income Let me give you an example: You contribute $70,000 to a Solo 401(k) in 2025 (employee + employer match). That money grows tax deferred - and you save $70,000 off your taxable income. So on that $1,000,000 NIL contract, you are now only paying taxes on $930,000. That makes a difference. Entity Formation: Get Your LLC Right If you are earning six or seven figures through NIL, you shouldn't be taking checks in your personal name. You need an LLC. Here's why: Liability Protection - separates your business from your personal life Brand Control - gives you a structure to license your name/image Tax Benefits - allows for business deductions and S-Corp treatment Here's another example: You run all NIL income through Brendan Enterprises, LLC. You elect S-Corp status and pay yourself a reasonable salary of $200,000. The rest is taken as distributions - not subject to self-employment tax - saving you $30,000 to $50,000+ per year. So taking the $930,000 (after the Solo 401(k) contribution) and now electing an S-Corp, you are now paying taxes on $900,000. You see, this is where a financial team that specializes in helping athletes is a difference maker. At Moment Private Wealth we are specialists in athlete wealth management  ensuring you maximize your benefits. Investment Strategy: NIL Doesn't Last Forever Let's be real for a second. NIL income is temporary. Let me say that one more time - NIL income is TEMPORARY . But if you play it right, the wealth can be permanent. Your game plan should include: Automatic investing into diversified portfolios. Setting up a Roth IRA or Solo 401(k) for long-term, tax-free growth Using a portion of NIL to build passive income - so your money works when you're not Check out this projection: If you put this money to work for you, earn ~6% in the market (which is very conservative by-the-way), by the time you are 70, your $1,000,000 NIL contract would be worth almost $12,000,000 without adding any other investments . Protection: You Are the Asset You are your business. If you can't play, promote, or post...you probably don't get paid. Here's what that means: You need to look at disability insurance in case injury cuts your earning power You need umbrella liability insurance to protect against lawsuits You need smart contracts and legal review for all deals You need estate planning (yes, even while you are young) to protect your family and your assets Why it matters: If you get injured during your junior season and lose a $1,000,000 NIL endorsement - disability insurance could replace a portion of that lost income. Real NIL Strategy in Action Let's walk through a real scenario: Athlete: Starting QB at a top-10 program NIL Income: $1,000,000 Goals: Play in the NFL, save for post-college life, invest, minimize taxes, protect brand Step-by-Step Plan: Hire a wealth management team that specializes in helping athletes - this may not seem important, but I am telling you right now...it is! Work with your wealth management team to form an LLC and elect S-Corp status. The right financial team will provide an attorney that specializes in helping athletes Pay yourself a W-2 salary and take the remaining as a distribution - this is a conversation to discuss with your wealth management team and CPA Set aside funds to pay your taxes immediately - no one likes doing this, but you need to stay out in front of this Max out your Solo 401(k) - in 2025, that is $70,000 Build 3 investment accounts: Short-Term Savings (cash, high-yield savings) Individual Brokerage Account Long-Term Growth (Roth IRA) Have risk management measures in place Umbrella Policy - work with your wealth management team to get you the proper coverage Disability Income Insurance Review Endorsement Contracts It may not seem important now, but by the end of the year, you will walk away with: Tax-compliant business income Money invested for the future Legal protection Peace of mind Final Word: NIL is a Window, Not a Lifetime Your average NIL career might last 3-4 years But, your wealth can last three decades - if you plan it right. At Moment Private Wealth, we specialize in turning short-term NIL income into long-term financial freedom. Your future starts now. ___________________________________________________________________________________________________________ If you are an NIL athlete and want to better understand how to manage your wealth, schedule a call with a Moment Founder . Not sure what questions to ask, check out this video on 10 questions you should ask when interviewing a financial advisor. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions I received frequently about this topic. Do I really need an LLC if I'm under 21?  Yes. Your age doesn't matter - your income does. An LLC gives you protection and structure. H ow much should I set aside for taxes?    Plan for 35-40% of your NIL income to cover federal, state, and self-employment taxes. Can I invest my NIL income?   Absolutely! NIL income is earned income - you can use it to open a Roth IRA, Solo 401(k), or a brokerage account. What is the first step I should take?   Set up a call with a financial advisor at Moment Private Wealth who understands NIL, taxes, and business structuring. Don't wait until tax season. ___________________________________________________________________________________________________________ *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

The biggest financial mistakes most MLB Draft picks make have nothing to do with baseball. They don’t come from strikeouts, slumps, or stat lines. They come from what happens off the field — and when they make their first financial decisions. And almost all of it comes down to one choice: They wait to hire their financial team. MLB Draft Window For most players, Draft Day feels like the finish line. But financially, it’s the starting block. Those first 30 days are when the most important decisions get made: Where you establish residency. How your signing bonus is structured. When you fund retirement accounts. Who you trust to guide you through it all. Get those moves right, and you build a foundation for decades of growth. Get them wrong, and you can fall behind before you make your professional debut. Want a full breakdown of how the MLB Draft works? Read The Moment Guide to the MLB Draft. Here’s a real example of how timing can change everything. The difference shows up fast — and it starts with when you build your team. Pre-Draft vs Post-Draft: The Real Difference Before we dive into the numbers, let’s bring this to life. Every year, we see talented players step into the draft with similar tools, similar upside, and similar financial opportunities — but end up on completely different paths based on how early they build their team. The contrast is striking, and it comes down to one thing: timing. These two players entered the same draft, were both top 50 prospects, but made their decisions on very different timelines. One brought us in early — well before their first dollar ever hit the account. The other waited until after the draft, when the opportunities for proactive planning were far more limited and felt rushed. This one difference in timing created two very different financial futures. 🟢 Player A: Hired Early and Planned Ahead What We Planned for Ahead of Time: Established residency in a no-tax state before signing Coordinated contract structure with their agent and financial team Contributed to a Solo 401(k) and MiLB 401(k) early Ran full tax projections before their first tax season Set up banking, payroll, and legal protections from Day One Impact of Early Planning ~ $130,000+ in total savings ~$100,000+ from state tax savings ~$25,900 from Solo 401(k) tax benefits ~$8,700 from MiLB 401(k) contribution Result:  Player A started their career with structure, clarity, and momentum. They had their tax strategy, cash flow plan, and savings vehicles in place before they even stepped foot on the field — which meant they could focus entirely on baseball. 🔴 Player B: Hired Late and Played Catch-Up What Couldn’t Be Planned and Implemented in Time: Missed residency window → taxed as a resident of a high-tax state Missed opportunities to optimize payment timing and terms No retirement contributions in Year One Tax planning was reactive instead of proactive Managing avoidable issues instead of enjoying a huge payday Cost of Waiting ~ $180,000+ in lost opportunities Extra state taxes paid Missed Solo and MiLB 401(k) tax savings Result:  Player B followed a comparable path with comparable upside — but was already playing financial catch-up. Instead of building wealth, they were scrambling to fix costly mistakes from day one. Their careers started the same, but their planning didn’t — and the results show it. When MLB Draftees Should Hire a Financial Team That gap wasn’t about talent — it was about timing. Draft picks assume they’ll have time to figure it all out later. But many of the biggest financial levers can only be pulled before your bonus hits or within the first few weeks of signing. If you miss them, they’re gone — and they don’t come back. Something to consider is also knowing the details around your signing bonus. Lucky for you, we have you covered: MLB Signing Bonus Explained: A 1st Rounder's Story Here’s why early planning changes everything:  Residency Planning Where you live when you sign your contract determines which state claims income tax on your signing bonus. For high-tax states, that can mean 10%+ of your bonus is gone before you touch it. If you wait until after signing to move, you’ve already missed the window. Contract Structure Coordination MLB teams can structure signing bonuses across different tax years. That affects which tax bracket you land in and how much you owe. Without planning, players often receive their bonus in a way that maximizes their taxes instead of minimizing them. Retirement Contributions Solo 401(k)s and the MiLB 401(k) are powerful tools to reduce taxable income and start compounding early. Waiting means you lose an entire year of contributions, growth, and tax savings — and the IRS doesn’t let you retroactively go back. Legal & Insurance Protections Disability insurance, liability coverage, wills, and POAs protect your career and your family. They’re easiest and cheapest to get before   there’s a problem. Once something happens, it’s usually too late. Players who hire early don’t just save money — they gain clarity, control, and peace of mind. They step into their pro careers prepared, not panicked. The First 90 Days Most draft picks think of their signing bonus as a reward. The best ones treat it as seed capital. It’s the only time in your life where you can convert a single check into lifelong financial security — if you plan for it. Instead of asking: “What can I afford now?” Ask: “How do I turn this into long-term wealth?” That’s what separates the players who are broke five years after retiring from the ones who never have to work again. Here’s what an early team will actually do before your first game: Residency planning and documentation — to establish tax domicile and maximize state tax savings. Tax projections and withholding setup — to avoid surprises and plan cash flow around what you’ll owe. Retirement account contributions — Solo 401(k) and MiLB 401(k) to reduce taxable income and jumpstart compounding. Contract structure review — to align bonus payouts and salary timing with your tax strategy. Legal and insurance protections — disability, liability, and estate documents — should be in place before they’re ever needed. Budget and cash flow strategy — to manage living costs, training expenses, and savings goals with clarity. This structure gives you clarity, confidence, and control — instead of scrambling because you didn’t plan ahead. The Cost of Waiting Waiting isn’t neutral — it’s expensive Surprise tax bills — from missed projections and poor withholding. Lost state tax savings — by missing the residency window. Missed retirement contributions — delaying compounding and long-term growth. Unfavorable contract terms — from uncoordinated bonus and salary structures. Financial stress and distractions — instead of clarity and focus on the field. By the time most players finally call for help, they’ve already lost opportunities they can’t get back. Key Takeaways Hiring a financial team early isn’t overhead — it’s leverage.  It protects what you earn and multiplies what you keep. The most expensive mistakes happen in the first 30 days.  Once they’re made, they’re hard or impossible to undo. Waiting doesn’t save you time — it costs you money.  The earlier you build the foundation, the further you get ahead. The Bottom Line If you’ve just been drafted — or expect to be soon — now is the moment to build your financial team. Don’t wait for check-cashing or tax season surprises. Let’s run your numbers, map your strategy, and help you keep more of what you earn. Schedule a call with Moment Private Wealth today. We specialize in turning draft victories into lifetime financial wins. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions received regarding athletes and money: When does Moment start working with future MLB draftees? We start working with families often a year before the MLB draft. Our goal is to ensure every family is educated on their options and can enjoy the draft when it comes. Does Moment help players with state residency? Yes, Moment has a checklist we walk every player through to ensure they are compliant in navigating state residency. How does Moment work with my agent? Moment works with every major sports agency, and that collaboration ensures all of our athletes maximize not just their signing bonus but their career earnings. Does Moment provide tax planning and strategy for MLB draftees? Yes, we handle all of our athletes' tax planning and team coordination. As part of your team at Moment, you will be working with a sport-specific CPA firm specializing in navigating everything that comes with athlete taxation.   *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

Tax deductions are one of the most powerful tools business owners have to legally reduce taxable income. Whether you’re just starting out or running a 7-figure operation, knowing what you can write off—and how to do it right—can save you tens (or hundreds) of thousands of dollars a year. In this guide, you'll learn: What counts as a tax deduction in 2025 Which expenses business owners can (and can’t) write off A real-world, 7-figure example with detailed tax savings The answer to the question we are frequently asked by business owners like you. What Is a Tax Deduction? A tax deduction reduces your taxable income, which lowers the amount of income that gets taxed. Example: If your business earns $1,000,000 in gross revenue and you deduct $400,000 in expenses, you're only taxed on $600,000. To be deductible, the expense must be: Ordinary  — common in your industry Necessary  — useful for your business operations What Business Expenses Are Deductible in 2025? Can I deduct my home office? Yes, if it’s used exclusively and regularly for business. You can deduct a percentage of: Rent or mortgage interest Utilities Internet Repairs Can I deduct business meals? Yes. In 2025, you can deduct 50% of meals that are business-related, including: Client lunches Travel meals Staff celebrations Can I deduct business travel? Yes. You can write off: Flights Hotels Rental cars/Ubers 50% of meals while traveling Can I deduct my car expenses? Yes. You can choose between: Standard mileage rate (TBD for 2025, but was $0.67 in 2024) Actual vehicle expenses (gas, insurance, depreciation) Can I deduct software and tools? Yes. Tools like CRMs, accounting software, design platforms, and project management apps are all deductible if used for business. Can I deduct advertising and marketing? Absolutely. Common deductible marketing costs: Paid social ads SEO services Influencer marketing Branded content Sponsorships Are wages and benefits deductible? Yes. Employee salaries, payroll taxes, health insurance premiums, and retirement plan contributions are all tax-deductible business expenses. Are contractor payments deductible? Yes. Payments to freelancers, consultants, or 1099 contractors are fully deductible if for business services. Can I deduct education and training? Yes, if it improves your skills or helps maintain your business. Examples: Certifications Business courses Industry conferences Can I deduct startup costs? Yes. You can deduct: Up to $5,000 in the first year The rest amortized over 15 years Are bank fees and interest deductible? Yes. This includes: Credit card processing fees Business loan interest Bank service charges Real-World Example: Tax Strategy for a $1.3M Business in 2025 Business Profile: Boutique Marketing Agency Owner:  Danielle Business Structure:  S-Corp Location:  Austin, TX Gross Revenue (2025):  $1,300,000 W-2 Salary (Danielle):  $160,000 Team:  5 full-time employees + contractors Deductible Expenses Category Amount Salaries & Wages $420,000 Payroll Taxes $35,000 Health Benefits $28,000 Contractor Payments $96,000 Office Rent $48,000 Software & Tools $12,000 Marketing & Lead Gen $39,000 Business Travel $21,000 Legal + Accounting $16,500 Equipment (Sec. 179) $23,000 Utilities + Internet $6,000 Insurance (General + Cyber) $7,800 Education & Training $5,400 Business Meals (50%) $3,750 Home Office (Accountable Plan) $3,600 Total Deductible Expenses:  $771,050 Retirement Strategy: Maxing Out the Solo 401(k) Danielle contributes the maximum allowed in 2025: Contribution Type Amount Employee deferral $23,500 Employer contribution $46,500 Total Contribution $70,000 Additional Tax Strategies Used Strategy Amount Deducted / Saved Section 179 Equipment $23,000 Solo 401(k) $70,000 Accountable Plan $3,600 R&D Tax Credit $14,000 (credit, not deduction) Taxable Income Calculation (After Deductions) Gross Revenue: $1,300,000 Business Deductions: $771,050 401(k) Deduction: $70,000 Accountable Plan (home office): $3,600 Taxable Income: $455,350 R&D Credit: –$14,000 (direct tax reduction) Federal Tax Comparison: With vs. Without Deductions Scenario Taxable Income Est. Tax (32%) Less R&D Credit Final Tax Owed No Deductions $1,300,000 $416,000 — $416,000 With Deductions $455,350 $145,712 –$14,000 $131,712 Total Tax Savings: $284,288 Real-World Example 2: Solo E-Commerce Seller (LLC) Business owner:  Mariah Business type:  Single-member LLC (Schedule C) Gross revenue:  $220,000 (Shopify + Etsy sales) Products:  Handmade skincare No employees Deductible Expenses Category Amount Cost of goods sold $65,000 Packaging + shipping $11,000 Software + e-commerce tools $4,500 Marketing (Facebook, IG ads) $18,000 Product photography + branding $2,000 Home office (15% of rent/util) $3,000 Phone + internet (80% bus use) $1,600 Equipment (label printer, desk) $2,500 Education (YouTube ads course) $1,200 Health insurance (self-employed) $4,200 Business travel (2 trade shows) $3,600 Total deductions:  $116,600 Solo 401(k) Contribution Mariah netted about $100,000 after deductions. She contributed: $23,500 employee deferral $18,000 employer contribution (approx.) Total retirement deduction:  $41,500 Tax Summary Revenue:  $220,000 Total deductions:  $116,600 + $41,500 = $158,100 Taxable income:  $61,900 Estimated federal tax (22%):   $13,618 What Can’t You Deduct? Some common expenses are not  deductible, including: Personal expenses (unless allocated properly) Clothing (unless uniforms or protective gear) Fines and penalties Political contributions Social or athletic club dues Frequently Asked Questions Can I deduct business expenses if I don’t have an LLC? Yes. Sole proprietors and freelancers can deduct business expenses on Schedule C of their personal tax return. You don’t need an LLC. What records should I keep to support deductions? Keep: Receipts Invoices Mileage logs Bank/credit card statements Notes describing the business purpose Maintain documentation for at least 3 years . Can I deduct business expenses paid from my personal account? Yes. As long as the expense was 100% business-related, it’s deductible.But it’s better to use a dedicated business account or card for clean record-keeping. How do I deduct partial-use items (like a phone or car)? Deduct only the business-use percentage . Example: If you use your car 70% for business and total expenses are $10,000, you can deduct $7,000. Is my own pay deductible? Sole Proprietor or Single-Member LLC:  No. Owner draws are not deductible. S-Corp/C-Corp:  Yes. Wages you pay yourself through payroll are deductible. What if I get audited? As long as your records are organized and the deductions are legitimate, you're fine.Most audits are triggered by: Excessive deductions Inconsistent income reporting Poor recordkeeping Can I amend a previous tax return to claim missed deductions? Yes. Use Form 1040-X to amend a federal return.You have up to 3 years  from the original filing date. Can I deduct losses from a business that didn’t make a profit? Yes. If you show a true profit motive, the IRS allows deductions—even with losses. But if you report a loss 3 out of 5 years, the IRS may treat it as a hobby. What tax deductions do most business owners miss? Home office Section 179 equipment Health insurance (self-employed) Augusta Rule (rent your home) Solo 401(k) employer contributions Mileage for local business errands Can I deduct clothing or personal grooming? No—unless it’s a uniform or protective equipment  required for the job.Regular clothes, even if worn for work, are not deductible. Are gifts to clients deductible? Yes, but limited to $25 per person per year . Branded swag may qualify separately under marketing. What if I run multiple businesses? You must keep separate records  and only deduct expenses specific to each business.Some shared costs (like your phone) can be allocated proportionally. Can I pay my kids and deduct it? Yes—if they perform real work , you can pay them a reasonable wage: Under 18: No payroll taxes (if sole prop or partnership) Deductible as a business expense Great way to fund their Roth IRA or 529 plan. Business Tax Deductions Checklist (2025) Fixed Expenses Office rent Utilities, internet, phone Software subscriptions Insurance (liability, auto, cyber) Variable/Strategic Expenses Marketing & advertising Business travel Equipment purchases Education & training Labor Costs W-2 employee wages Payroll taxes Contractor (1099) payments Owner retirement contributions Home-Based Business Home office Rent under the Augusta Rule Partial utilities/internet Furniture/equipment Financial/Admin Legal & accounting fees Bank fees Credit card processing Business loan interest Final Thoughts: Deductions Are Growth Tools Tax deductions aren’t just about lowering your bill. They’re about: Keeping more capital in your business Reinvesting in growth Funding things like retirement and hiring Lowers your tax bill Increases reinvestable profit Supports long-term planning (hiring, scaling, saving) The better your tax strategy, the faster your business scales—legally and profitably. And if your tax pro isn’t walking you through all of these opportunities?It might be time for an upgrade. Bonus Tip: Work With a Proactive Tax Advisor Most business owners work with a tax preparer who files returns after the year ends. That’s reactive. What you need is a proactive tax strategist —someone who: Reviews your financials quarterly Suggests entity changes when appropriate (e.g., switching to S-Corp) Helps you plan retirement contributions strategically Guides you on recordkeeping that protects you in audits This is where Moment Private Wealth steps in. Ready to talk tax planning?   Schedule a conversation  with Moment today.

“Wait, you mean to tell me I owe more in taxes?” This was me circa 2009 when it came time to file my tax return. You see, I had just signed my first MLB contract, paid what I thought was a king’s ransom in taxes, and here I was still owing more. Fast forward a few decades, and I have the opportunity to lead Moment Private Wealth . A financial planning firm that specializes in athlete wealth management . They say history repeats itself, and that certainly feels true as we advise our athletes. They sign for life-changing money. They pay a king’s ransom in taxes. They owe more come the tax filing deadline. So in today’s blog, I am going to break down everything you need to know about your MLB signing bonus. You will understand what gets taken out, what taxes you will pay, and the strategies to consider. Let's dive in... The MLB Draft Experience The MLB draft is a life-changing experience for athletes (and their families). Yet, with all that excitement, also comes a world of unknowns. Heck, unless you had family members go through this experience, chances are everything is new. Stack on the fact that everyone has an opinion, comment, or “the way to do it.” The endless sea of information can lead you to be more confused than when you started. Good news, if you want a deep dive into the MLB draft, check out The Moment Guide to the MLB Draft. If you want to understand everything you need to know about an MLB signing bonus, keep reading. We are going to break down this topic into three sections. 1) MLB Signing Bonus Structure The MLB draft is built around a slot system. It works like this: teams are assigned certain picks (slots) in the draft based on how their MLB team performed the previous season. The worst teams get the first picks. The best teams get the last picks. Major League Baseball then assigns a slot value to each of those selections. Add up all of a team’s selections, and that is how you get an MLB team’s collective bonus pool. This is the amount of money a team can spend on its entire draft. Go over that amount and risk paying an overage tax or worse, losing a draft pick in a following year. Teams then draft players based on a combination of talent and their ability to sign for them their assigned slot value. The key aspect to understand outside of the dollar amount is how the bonus is structured. The typical signing bonus is paid 50% in year one and 50% in year two. The first payment, on average, is 30 days after approval of the contract. The second payment, on average, is in the first quarter of the following year. The higher you are picked, the more leverage you have to negotiate the percentages paid in each year. Depending on how you approach your overall tax planning strategy, this greatly affects what hits your bank account. For a full guide on athlete tax planning, check out our Moment Guide on Athlete Tax Planning . The other key structure to understand is the abandonment clause. This is a clause teams try to place in MLB draft contracts that allows them to pull back signing bonus money should a player quit the sport in the first few years. For most players, it pays to remove this clause if the team is willing. The reason is two-fold: 1.      It ensures the players will receive all the money. 2.     It ensures the signing bonus is taxed as a true signing bonus (more on that later) In short, I want you, the player, to have control over not just your bonus but also your tax planning. Removing the abandonment clause ensures both of those things. In short, every MLB draftee that signs a draft contract will sign a standard MiLB contract. This language is set. Yet as discussed above, there are tweaks to this structure that are critical to understand when it comes to a signing bonus. A properly structured signing bonus ensures you pay the least amount in taxes and control of your signing bonus payouts.   2) MLB Signing Bonus Taxation   There is so much confusion around taxes and MLB signing bonuses, and this section will teach you exactly what you need to know. Signing bonuses are earned income, so in short, they are taxed in a similar manner to any salary you earn on the field. Yet how you get paid them, the moves you make around payments, and the planning needed are quite different. For clarity, let’s walk through a hypothetical signing bonus of $2,000,000. Let’s say it is structured as 50% in year one and 50% in year two. Most MLB teams will withhold 22% for taxes from that initial $1,000,000 payment. That means $220,000 goes to taxes and $780,000 goes into your bank account. Now here is where the confusion starts. You will owe more than 22% in taxes on your signing bonus. 22% is a standard tax withholding on the first million of a signing bonus. The top federal income tax rate is 37% and your $1,000,000 payment puts you squarely in that bracket. That means your total tax liability is closer to $370,000 (actually a touch less). But remember, the team only withheld $220,000. So you need to set aside another ~$150,000 for taxes come next April 15 (tax filing deadline). Now the good news is you can (and should be) earning interest on that $150,000 before you have to pay it to the IRS. The bad news is if you don’t have a team that specializes in athlete wealth management you might have a huge surprise come tax season. At Moment, our first move after a signing bonus comes in is running a tax projection and setting aside the necessary money needed to fulfill the full tax obligation. Now, a short aside on state taxes. This blog is not going to dive into the nuances of state taxiation on signing bonus. Yet you need to understand the role state taxation plays in the taxation of your signing bonus. In our hypothetical $2,000,000 example a player in CA would be subject to roughly $208,000 in state taxes while a player with Florida residency would pay no state income taxes. This is another massive tax planning opportunity for MLB draftees and something that we help our MLB draftees with at Moment. Now, onto the strategies you need to consider with an MLB signing bonus.   3) MLB Signing Bonus Strategies   There are so many things you “could do” with your MLB signing bonus to maximize it. So I am going to list the four most critical ones to consider, from easiest to hardest. Maximize your MiLB 401(k)   Major League Baseball made a massive change in 2024. They created a league-wide MiLB 401(k) plan that newly drafted players are eligible to contribute to.   This is the easiest way for any MLB draftee to reduce their current year tax bill.   Consider our previous example of a player with a $2,000,000 signing bonus. In 2025, that means a contribution $23,500 into the MiLB 401(k). That equates to a current-year tax savings of more than $8,500.   The key factor here is time; in order to maximize this contribution in the year a player signs, it needs to come out of your signing bonus. That means enrolling, setting up, and electing the correct contribution in the first 15 days after a player signs.   The reason for this is that most teams require a two-week notice to make any payroll changes. Those changes include 401(k) contributions.   Run a Tax Projection   You don’t want to be like me and have a surprise tax bill come next April. You want to work with a team that specializes in athlete tax planning.   At Moment, we work directly with the team payroll department to source the paystub and run a tax projection, ensuring every player knows what was withheld for taxes and what will be owed come next April.   Set Aside the Taxes Owed (but not yet paid)   Now, just understanding what you owe is step one. Understanding how to maximize that money is step two.   For our MLB draft clients, we use low-risk positions that allow players to earn interest on that money until we have to pay it. In previous years, this has meant thousands of dollars of additional money earned.   State Residency Strategy Look, state residency is your biggest move as a current or future MLB draftee. It is the single biggest step to take to save the most money on taxes. Yet to do it correctly, it is a complex step with lots of moving parts. You need to structure the signing bonus correctly, navigate the steps of establishing new residency, and ensure your financial team is working in unison with the MLB team’s payroll department. At Moment, we have walked through this process ourselves and helped MLB draftees navigate these complexities each year. Yet, it is different for each family, so here is my advice ~ Get educated on the options, the pitfalls, the pros, and the cons so you can make an educated decision. After all, we have one chance to do this right.   I have an incredible passion for helping the next generation of MLB draftees maximize every aspect of their financial life. That drive stems from personal experience walking in your shoes. Personal experience, knowing how hard it is to make money playing a sport. Personal experience knowing how much subpar information is out there for families. My mission as always is to help you get smarter with your money and I hope this blog helps you and your family navigate the complexities of an MLB Signing Bonus.   Moment was built to serve the specific needs of professional athletes.   To learn more about how we help book a call today and speak to our team today. Looking for more ways to get smarter prior to the MLB draft - Check out my YouTube page. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions received regarding athletes and money: When does Moment start working with future MLB draftees? We start working with families often a year before the MLB draft. Our goal is to ensure every family is educated on their options and can enjoy the draft when it comes. Does Moment help players with state residency? Yes, Moment has a checklist we walk every player through to ensure they are compliant in navigating state residency. How does Moment work with my agent? Moment works with every major sports agency, and that collaboration ensures all of our athletes maximize not just their signing bonus but their career earnings. Does Moment provide tax planning and strategy for MLB draftees? Yes, we handle all of our athletes' tax planning and team coordination. As part of your team at Moment, you will be working with a sport-specific CPA firm specializing in navigating everything that comes with athlete taxation. *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

Draft day is electric. Years of work finally pay off - and for the first time, life-changing money is on the table. But here’s the reality no one tells you: That headline signing bonus? It’s not what actually lands in your account. And the decisions you make in the first 90 days determine whether that moment becomes a launchpad for long-term wealth… or a story of missed opportunity. At Moment Private Wealth, this is where we come in. We help athletes take control of the money game - so they can focus on the actual game. The Illusion of the Bonus The average signing bonus of the first 43 picks in the 2025 MLB Draft  was $4,338,931 . Here’s what that really looks like after taxes and fees: Federal Income Tax (~37%):  ~$1.60M Agent Fees (5%):  ~$220K State Income Tax (North Carolina @ 4.25%):  ~$180K ➡ Total Costs:  ~ $2.0 million➡ Net in Your Account:  ~ $2.34 million That means roughly half your bonus is gone  before you make a single financial decision. This is why the first 90 days matter so much. The earlier you put structure in place, the more control you’ll have over what you keep. The Payment Schedule: Two Checks, Two Tax Years One often-overlooked detail: your signing bonus usually isn’t paid in one lump sum.  For most players, it comes in two installments over two calendar years : First 50%  — typically 30-45 days after your contract is approved. Remaining 50%  — paid the following year, usually between January and April, depending on the team’s payroll schedule. For example, on the average $4.34M bonus: ~$2.17M arrives within weeks of signing. ~$2.17M comes in early the next calendar year. This structure has major implications for tax planning, cash flow management, and investment timing. Knowing when your money hits is just as important as knowing how much. The higher the draft pick the more leverage you have to negotiate how your signing bonus is paid out. That leverage can open the door to further tax planning opportunities based on the percentage paid out in a given year. State Residency for Athletes Residency is one of the most misunderstood aspects of professional sports. Where you live on draft day has an outsized impact on your finances. MLB spring training happens in Florida (0% tax) or Arizona (2.5%). Establishing residency in one of these states can create six-figure savings. Example: California (13.3%) vs. Florida (0%) on a $4.34M bonus = $576,000+ swing. But this isn’t just swapping your driver’s license. A proper residency plan includes housing, documentation, lifestyle alignment, and ongoing proof to withstand scrutiny from state tax authorities. We guide clients through this step-by-step and coordinate with CPAs, agents, and payroll departments to ensure it’s done right. Retirement Accounts: The Hidden Advantage Most players think retirement accounts are for the future. In reality, they’re a tool to save money now  and build wealth for later. MiLB/Solo 401(k):  Contribute up to $70,000  and deduct it from taxable income. Backdoor Roth IRA:  Add another $7,000  with tax-free growth. Together, these moves can reduce your tax bill by ~$27,500  in year one. More importantly, it jumpstarts compounding - turning today’s dollars into tomorrow’s wealth. Investing Like a Pro Athlete (Because You Are One) Getting money in the door is only half the battle. The real question is: How much do you keep after taxes and bad investment choices? Athletes earn early, peak fast, and face unique risks. That’s why we design portfolios with an emphasis on flexibility and tax efficiency: Municipal Bonds:  Generate tax-free income. ETFs & Individual Stocks:  Provide more control and efficiency than traditional mutual funds. Donor Advised Funds:  Lock in charitable deductions while supporting causes you care about over time. Our goal is simple: growth that matches your career arc and maximizes after-tax returns. Why the First 90 Days Define the Next 30 Years Draft day is a milestone - but it’s only the beginning. The financial moves you make in the weeks after being drafted will echo for decades. This is why Moment Private Wealth exists. We’re not product salespeople. We’re fiduciaries - CFPs and investment professionals dedicated to building financial game plans for top MLB Draft Picks and the games biggest stars at their most pivotal moments. Key Takeaways for Draft Picks Half of your bonus disappears fast  — taxes and fees take a huge bite before you ever touch the money. Plan for the net, not the headline number. Your bonus comes in two checks  — one soon after signing, the other the following year. Plan for both tax years. Residency is a game-changer  — choosing the right state could mean six-figure savings in year one alone. Retirement accounts are tax weapons  — use them early to lower today’s bill and build long-term wealth. After-tax investing matters most  — the goal isn’t just growth, it’s keeping  as much of that growth as possible. The first 90 days set the tone  — the right structure now creates clarity, security, and momentum for decades. If you’re ready to see how much of your bonus you can truly keep and how to turn it into long-term wealth, let’s run the numbers and build your playbook today.   If you are an athlete or the family of an athlete exploring the MLB draft, connect with our team.   Moment was built to serve the specific needs of professional athletes.   You can book a call today and speak to a founder. Have more questions? Check out our YouTube page for ways to get smarter with your money. Get in Touch With An Advisor Frequently Asked Questions Here are some answers to questions received regarding athletes and money:   How does Moment help draft picks prepare for the MLB draft? Our focus is on educating families around signing bonus structures, amounts, tax planning, and everything that goes into actually signing your MLB draft contract. What is the biggest tax mistake you see with professional athletes? The biggest mistake we see is not planning in advance. There is a big difference between tax planning and tax preparation. How does Moment work with CPA firms? We work hand in hand with CPA firms that specialize in professional athletes. This way our clients are getting specific advice regarding their tax planning moves. What is unique about tax planning for professional athletes? The short earning arc, multi-state taxation, and income fluctuations provide athletes with circumstances often unique to them. We must account for all of these factors when looking at tax planning for professional athletes. *Moment Private Wealth offers information on tax and estate planning that is general in nature. Tax and Legal advice are not provided by Moment Private Wealth. Consult an attorney or tax professional regarding your specific legal or tax situation.

Why Business Succession Planning Matters More Than You Think Being a business owner is not for the faint of heart. You’ve taken risks, survived the valleys, and built something that not only provides for your family today — but could support generations if you plan wisely. Yet Business Succession Planning  is often the last thing owners tackle. You’re busy solving today’s problems — who has time to think 10 years ahead? But here’s the thing: Without a plan, you’re gambling with everything you’ve built. A smart succession plan isn’t just about selling — it’s about: Protecting your family  from chaos and tax surprises. Keeping employees and partners whole  when you step away. Maximizing the value  of your life’s work. Locking in your legacy , on your terms. At Moment Private Wealth , we see it all the time: business owners who wait too long, then scramble when life happens. Our mission? Make sure that’s not  you. When Should You Start Your Succession Plan? The best day to start planning was yesterday. The second-best day is today. Good succession plans take time to design, refine, and execute. We tell owners to start at least 5–10 years  before your target exit. That gives you time to: Train a successor  (if it’s internal or family). Position your business for maximum value. Create business strategies  that don’t crush cash flow. Minimize taxes , which can gut your payout if you’re not careful. Life happens. Health changes. Markets shift. The sooner you plan, the fewer regrets you’ll have. Who Needs to Be at the Table? You can’t build a solid plan alone. These are the key players every owner should have around the table: Your family.  Do they want to be involved? Will they inherit the business — or just the proceeds? Key partners and employees.  If you’re selling internally, they need to know the roadmap. A fiduciary financial advisor.  Like Moment Private Wealth — a team that works only for you, not for hidden commissions. A CPA.  Taxes can take 30%–50% of your proceeds if you don’t plan carefully. An attorney.  For buy-sell agreements, operating docs, and trusts. Good succession planning is a team sport.   At Moment, we coordinate that entire team for you, so nothing slips through the cracks. Building a Succession Plan That Actually Works A succession plan shouldn’t live in a desk drawer. It should be real, written, reviewed regularly, and built to hold up when life doesn’t go as planned. Let’s break it down step by step. Step 1: Clarify Your Endgame Too many owners think they’ll “just know” when it’s time. But the way you exit shapes everything else, so be clear. Ask yourself: Do I want to sell to an outsider for maximum value? Is the dream to pass it to family? Could a key employee or group buy me out over time? What’s non-negotiable? Keeping the brand? Taking care of my team? When we work with clients at Moment, we start here. If you don’t know your final destination, no map will get you there. Step 2: Identify Potential Successors If you’re passing it to family or internal leaders, be honest: Are they ready? Do they want it? Family succession can be beautiful — or it can tear families apart if you force it. We help owners get real about: Who has the skillset? Who has the desire? How can you mentor them over time? Sometimes the answer is “none of the above.” That’s when an outside sale or employee buyout might make more sense. Step 3: Value the Business Properly Don’t guess. Your “napkin number” might feel right, but buyers (and the IRS) see it differently. A professional valuation considers: Earnings and cash flow Market trends Your industry’s multiples Future growth potential Existing debts or risks At Moment Private Wealth, we partner with top valuation pros so owners get a realistic figure, not just wishful thinking. Step 4: Create a Funding Strategy A great plan without funding is just a wish. Buyouts don’t magically pay for themselves. Most next-generation owners don’t have millions in the bank. Here are a few common funding tools: Installment sales.  The buyer pays you over time, giving you income and tax flexibility. Life insurance.  A policy can fund a buyout if an owner passes unexpectedly. ESOPs.  Employee Stock Ownership Plans can let employees buy you out gradually. Private equity or outside investors.  Sometimes the best buyer isn’t inside the company. The right strategy depends on your goals, tax situation, and timeline. This is where real advice pays for itself. Step 5: Put It in Writing If you only remember one thing: Write. It. Down. A handshake deal won’t cut it when life happens. A real succession plan should include: A buy-sell agreement.  Clear terms on how ownership transfers. Updated operating agreements.  So partners know what happens if someone leaves or passes away. Trusts and estate planning documents.  To handle taxes and keep the IRS out of your family’s wallet. A funding plan.  So there’s cash to make the deal work. This paperwork is your business’s final insurance policy. At Moment, we make sure it’s airtight — and stays updated as life evolves. How Taxes Can Wreck a Great Exit Taxes are the silent killer of wealth transfers. Without smart planning, capital gains, estate taxes, and income taxes can swallow 30–50%  of your business sale. Some strategies we help owners consider: Selling stock vs. selling assets (big tax difference) Timing sales over multiple years Using trusts to shift assets ahead of time Taking advantage of lifetime gifting exclusions Using charitable strategies for big gains You built this company. Don’t leave the IRS a tip on the way out. Common Pitfalls That Sink Succession Plans We see the same mistakes over and over: ❌  Waiting too long.  Health issues or sudden market downturns can force a bad deal. ❌  Overestimating the sale value.  If your number’s off by millions, the plan doesn’t work. ❌  Failing to prepare the next leader.  The business can collapse if they’re not ready. ❌  Ignoring taxes.  A 7-figure surprise bill is the last thing your family wants. ❌  Not revisiting the plan.  Life changes — so should your documents. Real-Life Example: When a Plan Saves the Day One of our clients at Moment was a third-generation owner of a manufacturing company. He assumed his kids would take over — until we sat down and asked them. Turned out, neither wanted the day-to-day headaches. Good thing he asked early. We helped him pivot to an internal buyout with his COO — with a life insurance policy to back the deal if something happened unexpectedly. The business stayed healthy. The family got paid. The team kept their jobs. That’s a win. Bonus: Top 10 Questions to Ask When Planning Your Exit 1️⃣ Who do I really  want to take over — and are they ready? 2️⃣ What’s my company really  worth? 3️⃣ How do I want to be paid? Lump sum, installments, or mix? 4️⃣ What taxes will I owe? 5️⃣ Who pays for the buyout? 6️⃣ How do I protect my employees? 7️⃣ Is my spouse or family aligned with my plan? 8️⃣ What happens if I pass unexpectedly? 9️⃣ What professionals do I need to get this right? 🔟 What happens if my plan doesn’t  go as planned? FAQs on Business Succession Planning Q1: What’s a buy-sell agreement and why do I need one? It spells out exactly how shares are transferred if an owner dies, retires, or exits. Without it, disputes are almost guaranteed. Q2: What if my successor can’t afford to buy me out? That’s where insurance, installment sales, and creative financing come in. Planning makes it possible. Q3: Should I sell to family at a discount? Sometimes — but talk to your advisor first. Big gifts can create big tax issues. Q4: Can I still get income if I exit? Absolutely. Installment sales, consulting agreements, or partial buyouts can provide steady income. Q5: What’s the biggest mistake owners make? Waiting too long and assuming everyone’s on the same page. Spoiler: They rarely are. Final Thoughts: Lock in Your Legacy Business Succession Planning  isn’t just another box to check — it’s the final chapter of your life’s work. At Moment Private Wealth, we know owners only get one shot to exit wisely. That’s why we roll up our sleeves, get our hands dirty, and build plans that actually work  — so you can step away with confidence. Ready to talk exit planning?   Schedule a conversation  with a Moment founder today.