AboutAllen Expertise Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience Over 35years experience in the pension field
Organizations Various actuarial organizations
Education/Credentials MBA and various professional certifications
Question As an employee owner of an S corp I am seriously displeased with the increasing amount being paid into SS which I will never recoup if I continue to work another 3 1/2 years til age 66. Will a defined benefit plan permit me to reduce contributions to SS or do I have to decide to either eat it or just say the hell with it and stop working. I calculated it would take me living til I'm about 120 just to get back what I pay in the next 3 years without interest.
Answer You can establish a defined benefit plan and make substantial contributions to the plan. Since you will be making contributions, you will not be able to pay yourself as much and therefore your Social Security and/or Medicare taxes will be reduced. If you have employees, they will also be covered by the plan.
If you want to establish a defined benefit plan, I may be able to help you. Alternatively, if you tell me where you are located, I may be able to give you the name of a local actuary who can help.
