I’m a partner in a physician group that is starting a cash balance plan (CBP).
Age: 40
Married filing jointly: spouse taxable income $75k on W2
Partnership income: $400k
Partnership 401k: $69k
199A pass through eligible: Yes, up to $384k (then phased out)
CBP eligibility: up to $100k annual limit
Lots of moving parts here (401k, CBP, pass through deduction) so I can basically dictate my own taxable income for the year.
Assumptions: no cash flow issues, no FIRE, no additional income in retirement
Questions:
What strategy would optimize take home pay?
Do I take full advantage of 199A pass through deduction by targeting $384k AGI?
How much should I contribute to CBP?
Age: 40
Married filing jointly: spouse taxable income $75k on W2
Partnership income: $400k
Partnership 401k: $69k
199A pass through eligible: Yes, up to $384k (then phased out)
CBP eligibility: up to $100k annual limit
Lots of moving parts here (401k, CBP, pass through deduction) so I can basically dictate my own taxable income for the year.
Assumptions: no cash flow issues, no FIRE, no additional income in retirement
Questions:
What strategy would optimize take home pay?
Do I take full advantage of 199A pass through deduction by targeting $384k AGI?
How much should I contribute to CBP?
Statistics: Posted by Cucumbers — Mon Feb 05, 2024 3:14 pm