My group was recently taken over by one of the big EM groups. Im predominantly w2. Currently, I max out my 401K with match (ends up at 24k/year), his and hers backdoor roth iras. I also have some 1099 income and am able to put close to 20K/year into my solo 401k. I also put a significant amount into a taxable account (roughly 150k/year).
Our new group allows us to defer up to 50k of our income each year on a pre-federal/state income tax level (but post FICA and medicare). This seems like a pretty good gig, but the biggest caveat is if the group goes bankrupt then we have the potential to lose some or all of our DCP. Its essentially a promise that they will pay us the money later. So in addition to the typical risks associated with stock market investments, we have group insolvency risk. They also wont let us roll this over into a 401k/IRA, if we leave the group we have to start taking distributions
I currently make about 450K. Would you guys contribute the max 50k to this, part of the 50K, or just skip it all together?
Thanks in advance.
Our new group allows us to defer up to 50k of our income each year on a pre-federal/state income tax level (but post FICA and medicare). This seems like a pretty good gig, but the biggest caveat is if the group goes bankrupt then we have the potential to lose some or all of our DCP. Its essentially a promise that they will pay us the money later. So in addition to the typical risks associated with stock market investments, we have group insolvency risk. They also wont let us roll this over into a 401k/IRA, if we leave the group we have to start taking distributions
I currently make about 450K. Would you guys contribute the max 50k to this, part of the 50K, or just skip it all together?
Thanks in advance.
Comment