• Ozone

    Curious to know what the cost is to set up and manage these plans as an independent contractor ?

    • Mdoc

      Schwab charges 1500 set up and 1500 annually fee for one employee. Also, be careful to fund defined plan before 401k, as doing the defined plan contribution max changes what you can put into 401k that year. I maxed out my 401k profit sharing in 2018 then could not/it wasn’t worth starting defined plan until the following year per schwab actuary. with defined plan you must contribute to plan at least 5 years (there are ways out of this but threat is the minimum expected)

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  • kpdoc

    my company contributes 10% of base salary, with 4% interest annually up to IRS allowable max salary (shy of 300k, i.e., max 30k annually)

  • Kent

    Northwest Permante (Kaiser) replaced its traditional pension with one of these. 11% of gross salary at 5% fixed annual returns. I guess up to whatever is the allowed maximum. They also have a traditional 401k profit sharing plan with Fidelity on top of that and a good HSA.

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  • Jeff Raines

    Thank you for the above post and discussion. I am new to this and am just now trying to take on my own financial investments due to frustration with feeling taken advantage of. I start my job July 1 and will be IC status through my PLLC. I am also partnering into a micro hospital for 4% which will have to work there as well and will be IC status through PLLC. If I ended up starting a CBP, fund solo 401K and employ spouse for administration, would the entire contribution reduce my tax burden by that amount? So if was able to put $100K into CBP, $56K into 401K and $30-35K into spouse 401K ($191K) will that reduce taxes by the $191K? Sorry if that doesn’t make sense, I am reading and very new to the financial market

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