Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Re: Fund Tax Deferred Accounts on Jan 2
Old 08-14-2005, 06:48 PM   #21
Full time employment: Posting here.
TargaDave's Avatar
Join Date: Jul 2005
Posts: 588
Re: Fund Tax Deferred Accounts on Jan 2

Originally Posted by Martha
I'll try to answer some of your questions. Our office has a total of about 70 employees. We put the profit sharing and 401(k) into one pot, so it doesn't look like separate plans to employees.

Since we put the plan in place when I was in managment, I hired for myself a new secretary who was an older woman. I value her experience. Didn't even think about the issue that she will work into a higher profit sharing contribution quicker because she was older. Didn't think about health insurance. Would be highly inappropriate in any event. Instead, I worried about the ability to pay her enough to come.

In any event, we designed the plan to put as much pretax dollars away for owners as possible. As a result, every employee gets a decent profit sharing contribution. But those costs are less than the tax savings to owners.
I was under the impression that you were not allowed to do a 401k and pre-tax profit share at the same time. I'll have to give my agent a call. We just do a simple IRA with company match right now. I did start looking into a pretax profit share. Doubt my investors will go for it but never hurts to try.

I've got 16 employees in a small hi-tech manufacturing business and while we have never considered age an issue over skills (mostly advanced degree types here) I will assure you that most businesses on the manufacturing side, especially those with low margins, feel the heat big time.

I have to set all pay, health and tax deferred benefits to get great people in and keep them motivated, then pay for capital improvements and inventory, then hope we hustle enough business not only to pay for it all, but grow it all profitably to keep the investors happy. That's all after raising-spending some serious $ just to develop a product. I guess I see it from a slightly different angle than hiring a secratery. BTW two of our newest employees are also our oldest. No regrets whatsoever in spite of the hit to the health premium. Just don't put me in a room alone with the idiot who sets these demographic health benefit formulas.

Anyway Iím glad it works out well for your firm and I'll keep your formulas in mind.


TargaDave is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Rebalancing taxable vs. tax-exempt/deferred accounts AV8 FIRE and Money 22 02-08-2007 07:02 AM
Recommendation for tax efficient fund at Vanguard? Tracy42 FIRE and Money 4 02-01-2007 07:19 PM
Bush floats a national sales tax dex FIRE and Money 22 08-17-2004 07:15 AM
Tax efficient mutual fund or not animefans Young Dreamers 7 07-29-2004 03:19 PM
Tax Deferred to Roth Strategy mccl FIRE and Money 10 06-09-2004 11:08 AM


All times are GMT -6. The time now is 05:46 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.