Author Topic: Defined benefit plan  (Read 1026 times)

Dillydally

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Defined benefit plan
« on: April 03, 2016, 12:09:46 PM »
anyone have any experience with a defined benefit plan? Specifically how it worked out for a very small  company with zero to a few workers? From what I have researched it seems that keeping it open for a few years to defer 28% & 25% taxation and then reaching a number and terminating it into a standard retirement account without maintenance costs would maximize benefits.
« Last Edit: April 12, 2016, 10:36:39 AM by Dillydally »

Dillydally

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Re: Defined benefit plan
« Reply #1 on: December 25, 2018, 12:26:06 PM »
I set one up a few years ago. If you want to discuss, message me.

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« Last Edit: January 01, 2019, 05:22:49 PM by Dillydally »

DocMcStuffins

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Re: Defined benefit plan
« Reply #2 on: December 29, 2018, 07:33:43 AM »
Set one up this year. For business owners this is something your must look into. It is THE best way to invest into retirement and reduce your taxes. This is for business owners who have maxed their 401k and profit sharing..  How has it gone Dillydally?  I had to change my 401k provider to John Hancock because my other did not have a defined benefit plan possible.

Dillydally

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Re: Defined benefit plan
« Reply #3 on: December 29, 2018, 08:50:24 AM »
I was able to set up the account on etrade and hire a third party administrator to do the actuarial work. This plan works extremely well for a mustachian small business or sole prop that makes a profit that is sufficient to offset the ongoing third party actuarial administration cost.
If you are saving 50%-90% of your income, it can allow you to stash a significant amount of your income into retirement and defer taxes to the future when your income will be much lower.

If anyone is curious about more details, ask away. I understand that this plan is only going to work for certain situations, but if your situation is right,  it could be the best option for anyone within the mustachian community.
« Last Edit: December 29, 2018, 09:18:47 AM by Dillydally »

DocMcStuffins

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Re: Defined benefit plan
« Reply #4 on: December 29, 2018, 03:00:30 PM »
Agree with all you said.

DocMcStuffins

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Re: Defined benefit plan
« Reply #5 on: January 01, 2019, 07:46:05 AM »
I really wish other business owners knew about this. It fits in so well with the MMM frugality.  I had heard of one about 2 years ago from someone on this board.

I have thought this would be a great business to start also. Everyone in the end comes out happy. How else can someone tax deferr retirement benefits at such large numbers. You donít have to be trapped into only maxing your 401k.
« Last Edit: January 01, 2019, 08:31:19 AM by DocMcStuffins »