LLC - S -Corp - Strategy

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Topic Author
chiemela
Posts: 1
Joined: Sun Dec 24, 2017 9:35 am

LLC - S -Corp - Strategy

Post by chiemela »

Hello Everyone,

I am a 25 year old new business owner. I'm looking to save money for retirement as efficiently as possible. Please bear with me as my knowledge base for these topics is small.
1. LLC, taxed as S corp /My buddy and I are the only managers and employees.
2. Currently, i have a solo 401k/debating on a starting Personal Defined Benefit Plan

Questions
1.Lets say I contribute the maximum in 2018 to the solo 401k. I begin to trade on the maximum and double that amount. How does taxing work in that scenario? Is there a limit i can make? How does the taxing work overall? I pay taxes at 65 or so, but is that tax rate etc?
2. Anyone you familiar with Personal Defined Benefit Plans? and in conjunction with a self 401k? any details pros/cons?
3. Recommendations for any personals accountants who would be familiar with this STRATEGY?

Thanks,
John Laurens
Posts: 438
Joined: Mon Nov 14, 2016 6:31 pm

Re: LLC - S -Corp - Strategy

Post by John Laurens »

1. Not quite sure what you are asking in regards to taxes? Withdrawals at 65 (the age you stated) are taxed at your marginal tax rate. Assuming you weren’t using a Roth solo 401k on the employee contribution.
2. A defined benefit plan at age 25 would make little sense. It’s based on an actuarial table. Your contributions at age 25 would be so low that costs of plan and rules regarding guaranteed funding would make a DBP prohibitive.

Regards,
John
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