Profit Sharing Plan Question

[Plectron]

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One of my partners (Emergency Med) told me that if we work for two different employers and each one offers a profit sharing plan, we can max out both plans and put away close to $100k tax free. My google-fu seems to indicate that this is not true. Any info would be appreciated.

 

[tornadohunter]

You can make contributions tax free. You are taxed at the time you go to make withdrawals. There are additional taxes incurred if you withdrawals before 59 1/2 years.

 

[Plectron]

Right, I know that. My question was about having two PSPs and being able to max both or are the amounts combined?

 

[Hercules]

I'm almost certain that the $54k limit is for an individual regardless of how many 401ks/PSPs they partake in.


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[tornadohunter]

http://www.investopedia.com/articles/retirement/05/commonquestions.asp

I would speak to an experienced tax advisor.

 

[Hercules]

http://www.investopedia.com/articles/retirement/05/commonquestions.asp

I would speak to an experienced tax advisor.

After reading that article, I stand corrected. In general, speaking to an experienced tax advisor/ tax attorney is always better advice than listening to an anonymous online poster (like me) 🙂


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[tornadohunter]

After reading that article, I stand corrected. In general, speaking to an experienced tax advisor/ tax attorney is always better advice than listening to an anonymous online poster (like me) 🙂


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If anything is more complex than medicine and the human body, it is the US tax code. 74,000 pages last time I checked...

 

[Plectron]

Thanks for the info.