A powerful formula is combining a cross-tested profit sharing with a safe harbor 401(k).
Sample Max Contribution Comparison Scenario
Scenario: Business Owner age 55, Spouse 52; Two employees age 24 and 33
|Profit Sharing + Safe Harbor||401(k)||Total Annual Contributions|
|Owner & Spouse||$67,000||$50,000||$117,000|
|Employees||$ 2,600||$ 2,600|
|Percent to Owner & Spouse||98%|