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Subject:  Re: starting out - who do I need to help? Date:  11/16/2000  8:17 AM
Author:  SixOfNine Number:  2200 of 15025

I agree. I was able to put 24,000+ into QRP last year.


That's great! Congratulations. I'm aiming for the $20K range this year, which has been the best of my six years as a one-employee C-corp. It will be lower or higher depending upon my final decision on the exact total to put into the profit-sharing half of the paired plan.

As I'm sure you know, that's the beauty of the paired money-purchase/profit-sharing QRP. Set the mandatory percentage that goes into the money purchase plan at a reasonable, doable level (mine is 10%). In a good year I can then put more into the profit-sharing component as long as the total percentage doesn't exceed 25% of gross compensation or $30K, whichever comes first (you're getting pretty close <g>).

In a bad year I can scale back, even to zero, the amount that goes into the optional profit-sharing component. And it's all paid directly by the corporation and the corporation can expense the payments. What's not to like about this type of retirement plan? <g>


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