Cash Balance / Defined Benefit Plans #doctor #retirement #investing

Defined benefit plan, a cash balance plan. This is a great way to tax defer a lot of money, particularly as you get older, you get into your 50s and 60s. It's amazing how much you can put in this. My partnership has a cash balance plan, and the one we recently implemented, we closed one and opened another one. I'm 49 years old. I'm allowed to put $120,000 a year into that plan, in addition to $69,000 into my 401k profit sharing plan. Right. So this is from one employer, and I can put in $189,000 in tax deferred money. And so it's really cool. And as you get, as you get older, depending on how the plan is set up, you might be able to put in even more. You know, 150, 200 is not that unusual. So these are pretty cool plans. They are like extra 401ks masquerading as a pension.