3. Self-employed workers can shelter up to $46,000 annually: The Solo 401(k) is a great option for one-person businesses as it allows participants to: contribute $15,500 to their plan, and make additional employer contributions that defer up to $46,000 based on the amount they earn.
But that may not be enough to stem the flood of red ink, particularly in cities and states where pension fund contributions have been deferred to avoid cuts in other spending.
The start date for the government's proposed catch-up concessional super contributions will be deferred by 12 months to 1 July 2018, providing a saving over the forward estimates of $400m.
If passed, it would allow the state and local governments to start paying back deferred contributions over five years, beginning in 2005, rather than in 2004, saving local governments $172 million and the state $106 million, Mr. Hevesi said.
Earnings on these contributions are tax deferred, not tax free.
The most affluent groups in society benefit disproportionally from generously subsidised university education enabling graduates to earn on average an extra $1 million during their lifetimes: raise deferred contribution fees.
Nor has he eschewed budget gimmicks: like earlier New Jersey governors, Mr. Christie has closed budget gaps in part by deferring required contributions to state pension funds, which is in effect a form of borrowing against the future, and he has also sought to paper over budget gaps by diverting money from places like the Transportation Trust Fund.
Traditional aftertax contributions also grow tax deferred, and when you make withdrawals all earnings (although not your original aftertax contribution) are taxed.
Some states, for instance, have deferred making contributions, which deprives pension funds of consistent payments.
