Last night someone mentioned a type of retirement plan I had never heard of before. I thought it was something like 914i but I cannot find that when searching, nor do I see anything like it described by searching “retirement plans.” Evidently it allows you to shelter up to 200K per year in very strictly defined low yielding instruments, and allows a 401K to coexist. Can anyone recognize what I am trying to describe?
That doesn’t sound familiar to me. I can’t see how a tax-deferred retirement account would allow someone to defer $200,000 per year since the 415 limit on defined contribution plans is 100% of compensation or $42,000 (in 2005), whichever is less. But maybe there’s something I haven’t heard of.
Can you get any more information on what that person said about it? Is it possible he’s getting the $200,000 mixed up with the comp limit of approximately $200,000? That is, the limit for eligible compensation is $210,000 (close to the $200K he said) - if you make actually $500,000 and contribute 15%, your deferrals are capped as if you made only $210,000.