Brian Boyd

It's a deduction now to you, very much like contributing to your 401k is a deduction.

It's before tax dollars going into the plan that's going to grow.

And once you finish funding the plan, it's yours for life.

Now, the great thing about it is

like your 401k, you can contribute $23,500 as an employee.

On the business owner side, you can contribute as an employee and the employer contribution to max out, I think it's around $69,000, $70,000.

The SEP is very similar.

This year, I think the number is $72,000 that you can fully fund, but that's 25% of your adjusted gross income up to whatever that number is this year.

I haven't looked at the indexing, but-

If you're over 50, you can contribute another $7,500.

It's a catch-up contribution.

For the IRA, there's also a catch-up contribution.

I think it's like $1,000 or something.

But...

The defined benefit plan can be hundreds of thousands of dollars a year.

Hundreds of thousands of dollars a year.

Imagine if you're making $500,000 a year, but you're grossing $1.2 million, right?

So you can actually take $200,000, put it into a defined benefit plan, bring your gross down so your taxability is also lower.

So it's really a game changer.

Yeah, you're taking it from a 37% tax bracket down to the next bracket, which is great.