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Tag: Cash Balance

14 Aug
401k

Do S-Corporation Distributions count for 401k & Pension Plans?

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S-Corporations, Distributions, W-2 Wages, Self-Employment Tax, 401k & Pension Plans & their interaction – it’s all about balance. So, you’ve talked to your accountant & they tell you to minimize your W-2 wages to limit your self-employment taxes. Then, you talk to your investment advisor and they explain the advantages of tax-qualified retirement plans such […]

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Cash Balance vs. 401(k) Considerations for Business Owners

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If you are an owner or partner looking for larger tax deductions and accelerated retirement savings that aren’t available under a 401(k) plan, a cash balance pension plan may be the perfect solution. The cash balance plan allows employers to control how much to save for an employee’s retirement, as opposed to 401(k) plans which […]

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DB/DC Combo Plans Maximize Contributions to Key Personnel

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One way to maximize benefits to key personnel and also maximize the key personnel’s share of the company’s total retirement plans contributions is referred to as a defined benefit/defined contribution (DB/DC) combo plan. These plans require general nondiscrimination testing and must follow several additional rules.  These include a gateway test that must be passed which […]

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