B Plan, IRS Code
02-24-2023, 10:25 AM
#1
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B Plan, IRS Code
Can none tell me what IRS section covers the typical “B” plan, which is a defined contribution plan?
My son works for a company that is making a lot and looking for ways to save more, tax sheltered..like our B plans.
My son works for a company that is making a lot and looking for ways to save more, tax sheltered..like our B plans.
02-24-2023, 11:58 AM
#2
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Originally Posted by hopp
Can none tell me what IRS section covers the typical “B” plan, which is a defined contribution plan?
My son works for a company that is making a lot and looking for ways to save more, tax sheltered..like our B plans.
My son works for a company that is making a lot and looking for ways to save more, tax sheltered..like our B plans.
02-24-2023, 02:07 PM
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Originally Posted by Myfingershurt
Umm, isn’t it section 401(k)?
It looked and is managed like a 401(k).
02-24-2023, 04:16 PM
#4
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Originally Posted by hopp
401(k) contributions are limited to about $20000 /yr. The “B fund” was funded by the company to a maximum of $57,000, combined value with 401((k).
It looked and is managed like a 401(k).
It looked and is managed like a 401(k).
02-25-2023, 01:37 PM
#5
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Originally Posted by Myfingershurt
Personal contributions are limited to 20k-ish. The company can contribute up to the max 415(c) limit every year which is $66k for 2023. But the plan is still a 401(k). The two contributions (personal and company) can’t total more than that $66k. That’s where a lot of higher earners get into a situation where they max out and are looking for some sort of additional vehicle like a tax deferred MBCBP to put the excess money.
415(c).. Yes! That’s it. Thank you. Somewhere in the brain fog I had forgotten.
Is the MBCNP allowed in addition to a 401(k)? What are the limits?
Appreciate it.
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