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We have a defined benefit plan and it is indeed heavily age-weighted and allows HUGE contributions; however, the paperwork and administrative burden is also huge. No joke, there are hundreds of pages of docs to deal with.
These plans are not limited/designed for the self-employed; they are traditional corporate pension plans and any company that can afford it could probably create one. Our plan saved us approx. $70K in taxes last year.
Defined contribution (profit sharing) plans are becoming far more common because the contribution levels are much lower and discretionary; also, a 401K component can be added to the plan to enable employee voluntary contributions.
I personally view social security and medicare as nothing more than taxes on current income, which is how the funds are being expended, after all. Our social security reserves have been plundered and the "retirement fund" is not really even there in real liquid terms! I do not count on anything gub'mint sponsored being there for me when I "retire" (which will hopefully be in 15 yrs or less, vs 30 yrs when the gub'mint says I should.)
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Chris C.
1973 914 "R" (914-6) | track toy
2009 911 Turbo 6-speed (997.1TT) | street weapon
2021 Tesla Model 3 Performance | daily driver
2001 F150 Supercrew 4x4 | hauler
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