Paying 35k/year taxes on 300k income... tax evasion or genius?

Assuming I'm a 1099 contractor. By utilizing solo 401k + cash balance plan which allows total of 151k yearly PRE-tax investment thus reducing total state + federal taxes to just 35k/year. 300k pre-tax becomes 265k post-tax which puts the 300k 1099 earner on par with a 500k W2 earner in CA (where you'd be paying over 200k/year in taxes!!!! yikes) Is this legal or is it tax evasion? Calculations made using: https://assets.futureplan.com/futureplan-assets/FPContributionLimitsTable.pdf ... Read more
Source: Student Doctor Network - Category: Universities & Medical Training Authors: Tags: Psychiatry Source Type: forums