MBCBP- not sure why folks are up in arms over this. Non-partisan, non-judgemental, just overall let’s talk this through. What we are doing is not new overall, but groundbreaking for the career. MBCBP’s are normally for doctors and lawyers (and associated fields) that have great incomes, yet use a great majority of their younger years to pay off the business debt and later years to accumulate wealth. We are looking to do the end stage, contractually, in this contract. Run your number scenario of what the “dollars” do when you actually hit the “normal retirement”
limits and get your 16% excess vs a higher DC and a massive amount into a MBCBP. Only math that says a problem is a trust fund, massive inheritance, current divorce proceeding, or unwillingness of money “in your name” to be managed outside of your control. In terms of retirement buckets- wow, this works well for anyone saying “I lost my pension”. Out of the mbcbp- you can do a lump sum, annuity, or traditional IRA transfer. You can’t do tax differed in ANY other way with your current income to avoid taxes now.