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Why 401K is a winner. (profit-sharing plan tax deductions) (column)

From: Modern Machine Shop  |  Date: 10/1/1989  |  Author: Blackman, Irving L.

Why 401K Is A Winner

Do you know what successful business owners identify as their favorite long-term tax-saving technique? Hands down, a qualified pension or profit-sharing plan always wins...and why not? Where else can you control your tax-saving goodies every step of the way? You get a tax deduction when you put money into the plan's trust. The earnings of the trust accumulate tax free. When you take your share out of the trust, a special averaging break cuts your tax burden.

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