Running a Small Business
Salary
Salary
Plan
Contribution
Contribution
Deferral
Deductions
% of
Salary
Salary
50
$208,000
$183,000
$29,000
$20,000
$49,000
24%
204%
Totals
$232,000
$232,000
$58,000
$40,000
$98,000
42%
|
Qualified Plan for a Husband / Wife Team Running a Small Business |
||||||||
| Tax Magic #3 | |||||||||
| Age | Original Salary |
Adjusted Salary |
Plan Contribution |
Elective Deferral |
Total Deductions |
% of Salary |
|||
| Husband | 50 |
$208,000 |
|
$183,000 |
$29,000 |
$20,000 |
$49,000 |
24% |
|
| Wife | 50 | $24,000 | |
$49,000 | $29,000 | $20,000 | $49,000 | 204% |
|
Totals |
$232,000 |
$232,000 |
$58,000 |
$40,000 |
$98,000 |
42% |
|||