I opened a OnePersonPlus Defined Benefit Plan and put away $150,000 in 2015 and another $120,000 in 2016 and it’s all a deduction. I figure at least 30% of it is a gift from the IRS.
Defined Benefit Plans allow clients the largest yearly retirement contributions — averaging $133,000 in 2016 — while saving huge amounts in taxes. Our unique programs are designed for small businesses with 1 to 10 employees. Depending on the situation, business owners may be able to save over $2.6 million for retirement in just 10 years. The plans’ open architecture allows assets to be invested in mutual funds, bonds, equities, annuities, or any other marketable securities that advisors and clients select.
Good Prospects for DB Plan
A defined benefit plan is an IRS-approved retirement plan that allows qualifying small business owners to make significant tax-deductible contributions each year. Cash balance plans are a type of defined benefit plan. The contribution amount for these plans is calculated based on a number of factors:
These plans must be opened by end of the fiscal year, generally December 31st and contributions are required each year.
The best plan for a profitable small business will depend on the number of employees and the owner’s cash flow outlook.
OnePersonPlus is a traditional defined benefit plan best suited for owner-only and family businesses. Business owners contribute $100,000+ on average each year toward retirement wealth.Learn More
OwnersPlus Retirement Program combines a cash balance defined benefit plan with a safe harbor 401(k)/profit sharing plan. The program allows business owners with a few employees to make large deductible contributions for themselves, up to $200,000 or more while controlling the total cost of employee retirement benefits.Learn More
With lower contribution limits than defined benefit plans, this plan is a good option for owner-only or family companies that need the flexibility of making optional contributions each year.
Business Owners can make high annual contributions and in certain situations, combine this plan with a OnePerson(k) to increase contributions and flexibility.