Getting Started with Your Plan

OnePersonPlus Defined Benefit Plans and OwnersPlus Cash Balance +401(k) plans have the potential to allow business owners to reduce current year taxes and build wealth by making the largest possible tax-deferred contributions to an IRS-approved retirement plan. We have simplified the process and provide free consulting to help you decide if this is the right plan and the right time for you.

Step 1: Decide How Much You Want to Save

A Plan Designed Specifically for You

We start by learning about you and your objectives:

  • Are you trying to maximize your savings and tax deductions or do you have a certain amount you would like to contribute each year?
  • How are you compensated?
  • How long do you plan to keep your business?
  • Is your income stable or highly variable?
  • Do you have or are you planning to add employees?

When we understand the basics, and discuss your situation with you and your CPA or advisors, we design a plan and estimate what your annual contribution to a defined benefit or cash balance plan will be.

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Estimating Your Contribution

Step 2: Estimating Your Contribution

We will calculate your annual contribution to a OnePersonPlus® or OwnersPlus program based on actuarial formulas and:

  • Your current age – the older you are, the more you may contribute each year to reach a specific goal
  • The average of your three highest consecutive years of income. Eligible compensation differs based on your type of business. Learn more about compensation.
  • Your planned retirement age – usually at least five years from the year you adopt the plan
  • In subsequent years, the balances you have accumulated in your plan

You can run an estimate for yourself right now. If you have employees, complete an Illustration Request Form and we will run a customized illustration for you.

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ESTABLISHING YOUR PLAN

Step 3: ESTABLISHING YOUR PLAN

Once we have a plan designed to meet your objectives, you will complete a Set Up Questionnaire and mail to Dedicated DB with your set up fee. Upon receipt, we will create your legal plan documents and send a Document Kit with your plan Adoption Agreement and other documents to sign. This process can take a couple of weeks to complete.

 

Pension Benefit Guaranty Corporation (PBGC)

Defined Benefit plans are required to be covered by the Pension Benefit Guaranty Corporation (PBGC) insurance program with the following exceptions:

  • Professional Service Employer with less than 25 participants
  • Owners only / with spouse

A professional service individual includes, but is not limited to, physicians, dentists, chiropractors, osteopaths, optometrists, other licensed practitioners of the healing arts, attorneys at law, public accountants, engineers, architects, draftsmen, actuaries, psychologist, scientists, and performing artists.

 

If required to be covered by the program, premiums will need to be paid to the PBGC.

 
Defined Benefit plans must be established by the end of the fiscal year for your business, generally December 31st.

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Investment Account

Step 4: Investment Account

Once your DB plan is established and we provide your Trust ID, you can open an investment account at any brokerage, mutual fund company or through a financial advisor. You (and your advisors) select and manage the investments. Dedicated DB does not manage your investments or charge any investment-related fees.

  • We do suggest that you consider investments that are not highly volatile.
  • If you open your account prior to December, do not deposit more than 50% of the expected contribution until you give us your final compensation for the year and we have updated your contribution amount.
  • Contributions are not required until you file your taxes, with extensions, but no later than 8.5 months after the end of your fiscal year.

Estimate how much you or your client could save on taxes with our DB calculator Try it now

See if you or your client qualify for Defined Benefits Learn More

Questions about opening new plans

Call toll free at: 1 (866) 269 - 2706
(Monday to Friday, 9.30am-8pm ET) or Send us a message