Client of the Week

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Executive Trades up His Retirement Plan

A 64-year-old Board of Advisors Director, who previously funded a SEP IRA, decided to up the ante and go for a Defined Benefit plan + 401(k) combo plan. This allowed him to put away $102,000 into the Defined Benefit plan and $29,000 into the 401(k), based on his income of $170k in Schedule C. This contribution is considerably more than the $35,700 that a SEP would have allowed. Moreover, this executive now has the potential to stock away more than $500,000 for retirement over 5 years.

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