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| No, in a nutshell and the quickest way to explain it, is the reverse of defined contribution plan. You determine an income you wish to have, and an actuary will do mathematical calculations to arrive at an amount and time table to achieve desired goal. That’s why you can set aside so much more than a defined contribution plan. But you need to have the income to fund the plan, deviations are subject to an excise tax. If your gonna move a mountain, you need a steam shovel, and this is that tool for the job. In reply to M&M’s question. Can use bins to defer also, store beans instead of corn, then place inside a charitable remainder trust to sell them, and provide up to 20 years income, no recapture. Investment gains inside the trust will be taxable.
Edited by Boone & Crockett 2/17/2019 12:17
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Do you pay income taxes?
