GoFuckYourself.com - Adult Webmaster Forum - View Single Post - US Income tax breaks for higher incomes

arg · 09-15-2005, 07:58 PM

If you have a corp, and are looking to put more than $40k/yr into a 401k or SEP, you might look into solo defined benefit plans. Upsides are higher caps for deductible contributions ($100k+) and ability to roll it into other retirement accounts after a set period (5 yrs?), downsides are it has to be in low-risk, low-yield investments until you roll it out, and higher admin/paperwork costs (this isn't a do-it-yourself retirement account). If you're nearing retirement (50+) and/or you actually want that much money invested conservatively, so much the better...if you're younger, I think you'd want to terminate the plan early and move the assets to other retirement accounts in a few years. This is just one approach. There are so many options and factors to consider that if you're earning a lot, you should seek professional advice.

09-15-2005, 07:58 PM
arg Confirmed User Join Date: Feb 2003 Posts: 1,164	If you have a corp, and are looking to put more than $40k/yr into a 401k or SEP, you might look into solo defined benefit plans. Upsides are higher caps for deductible contributions ($100k+) and ability to roll it into other retirement accounts after a set period (5 yrs?), downsides are it has to be in low-risk, low-yield investments until you roll it out, and higher admin/paperwork costs (this isn't a do-it-yourself retirement account). If you're nearing retirement (50+) and/or you actually want that much money invested conservatively, so much the better...if you're younger, I think you'd want to terminate the plan early and move the assets to other retirement accounts in a few years. This is just one approach. There are so many options and factors to consider that if you're earning a lot, you should seek professional advice.