Strategy: Integrate your company’s profit-sharing contributions with Social Security tax payments. That effectively reduces the amount the company must contribute on behalf of the rank and file.
As a result, highly compensated employees — including you — will be entitled to a larger slice of the pie.
Is it legal? Absolutely. An integrated retirement plan qualifies as a “permitted disparity” under a special exception in the tax law. The plan is not considered discriminatory even though only a select few might benefit from it.
Here’s the whole story: Employers are required to pay their share of FICA tax (both Social Security ...(register to read more)