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Can you explain in more detail the sort of tax breaks your company gets for setting up a 401K, beyond the impact of your contributions?

Most small business are either S-corps or LLCs (I'm an LLC) and thus pay business taxes on their personal income tax form. My 401k contributions are deductible and result in a several thousand dollar reduction in taxes. Well worth the effort.

Any limits based purely on income alone is not geographically unbiased, and should have a COL adjustment. One can chose where they live in retirement, but not so much while working. And if the income level is not indexed for inflation, what is today's attack on those with higher income will be tomorrows attack on the middle class.

According to the article, the limit is based on the top tax bracket (that is, contributions above that amount are deducted at a lower rate). Tax brackets are indexed for inflation and adjusted yearly.
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