Sep-Ira vs for benefit of (FBO) profit sharing

[Thorg12]

New job is giving 20% income to profit sharing in form of “for benefit of” plan. I set up my own with who ever; fidelity etc.
I will eventually become partner and the group will be owned by about 7-10 of us.

Why not do a sep-Ira as opposed to FBO plan.
FBO is a little more flexible than step-Ira I believe.
Would love to here people's thoughts.
What are the benefits to FBO profit sharing vs sep-Ira?
I'm trying to read about it but can't figure out why choose one over the other
Thanks

[jfoxcpacfp]

By "new job" do you mean you are an employee? OR are you a SE contractor hoping to eventually be brought under umbrella as a partner? Would probably have to read how the contract specifies before commenting.

[Thorg12]

I am an employee now. All of us are about 8-10 of us are employees. We are employed for 3 years and then we become the owning partners and we run the group. The "partners" now get phased out over 3 years.
They are very open to whatever we want to do. I'm just wondering why they chose FBO plan as opposed to sep-ira.

[Post deleted at author's request.]

 

[jfoxcpacfp]

Thorg12 wrote:

They are very open to whatever we want to do. I’m just wondering why they chose FBO plan as opposed to sep-ira.

Click to expand...

Why don't you ask them? It may be "that's how we've always done it" or they may be able to point you to a logical answer. Who knows, you may be a catalyst for change.

[Thorg12]

That was very helpful.
I ask bc what they have now is they take you income and simply give you 20% into the FBO plan at year end.
For example your earned 100k. Then at year end they deposit 20k into your "for benefit of" account.

Most of the physicians would be coming close to the employer contribution limits; also the group is small so I guess that's benefit as opposed to doing sep-Ira.

Thanks again for the replies; I really appreciate the input.