The Cash Balance Plan Move That Lets Business Owners Defer $200,000 in a Single Year

Quick Read - Cash Balance Plan lets 55-year-old dentist shelter $280,000 annually ($80k Solo 401k plus $200k contribution), saving $98k federal tax at 35% rate. - Establish plan before year-end with actuary; mandatory annual funding creates compliance obligation that cannot be...

Quick Read – Cash Balance Plan lets 55-year-old dentist shelter $280,000 annually ($80k Solo 401k plus $200k contribution), saving $98k federal tax at 35% rate. – Establish plan before year-end with actuary; mandatory annual funding creates compliance obligation that cannot be…

ipped without IRS penalties. – Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today

Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here. A 55-year-old solo dentist nets $750,000 in pass-through income from her practice.

She maxes her Solo 401(k) every year. She still owes well into six figures in federal tax. The question on r/whitecoatinvestor and Bogleheads forums comes up constantly: is there anything legal that lets a solo professional shelter a quarter-million dollars or more in a single year?

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