Step 1: Prospect for Ideal Clients
See profiles of ideal clients and prospecting tips.
Prospects in Your Book of Business
You might already have great prospects for defined benefit plans. Here’s what you are looking for:
- Client who wants to contribute more than $66,000 annually or a higher percent of income than allowed in a SEP or 401(k)
- Owner-only, or immediate family businesses
- Age 35+ — we can design plans for solo practitioners as young as 35 if we add a 401(k)
- Client expects to be able to make significant contributions for 3-5 years
Common occupations that might qualify:
- Family Business
- Financial Planner
- Graphic Designer
- Independent Corporate Board Director
- Independent Insurance Agent
- Manufacturer’s Rep
- Mortgage Broker
- Real Estate Agent
- Software Developer
- Web site Entrepreneur
Employed individuals with Side Income or Second Income may qualify
Highly paid executives whose spouses have self-employment income may want to contribute most of that income to OnePersonPlus to save on their taxes and fund retirement.
People with supplemental self-employment income often don’t realize that their side income may qualify them for a DB plan. Don’t overlook:
- Independent members of corporate boards
- University professors with consulting income
- Writers, actors, and others with royalty, residual or licensing income
Generally, clients who are 5-15 years from retirement want to save as much as possible for retirement. They are interested in learning about one of the best tax-advantaged solutions available today.
If you have clients who fit this profile,
If they don’t qualify, ask for referrals. Chances are, they’ll know someone who may benefit from a Defined Benefit Plan.
Prospects in Your Community
Want new clients? A simple web search can help you identify local prospects.
Many medical associations and state boards have online directories of physicians that you can search. As a member of a health and managed care organization, you can access local doctors by specialty. Prospect for Physicians.
Get directories of attorneys and other professions. The directories with contact information are typically searchable online, and your local library often will have these.
One of the best ways to identify qualified members of your community is through local CPA firms. See all the resources we offer to help you Partner with CPAs.
Next Step : 2. Begin the Conversation
Step 2: Begin the Conversation
Once you’ve identified good prospects, begin the conversation. These marketing tools will help you introduce defined benefit plans.
For additional resources, visit Sales and Marketing Resources.
Next Step : 3. Present a Proposal
Step 3: Present a Proposal
How much can your client save?
Use our Defined Benefit Calculator to estimate the maximum annual contribution, tax savings, and total benefit at retirement.
Once you’ve created an estimate that you want to share with your client, save it as a PDF and you will have a complete proposal that you can print or email to your client. In less than two minutes you’ll have a client-ready proposal that sells itself.
Next Step : 4. Contact Dedicated DB
Step 4: Contact Dedicated DB
Get support each step of the way
Defined Benefit plan experts are available to meet by phone with you, your client and your client’s CPA. We listen and offer personalized service to make sure that the plan design:
- Is right for your client
- Meets the objectives of your client
- Complies fully with the latest changes in IRS code and amendments
Sometimes, a client has a unique situation that requires special attention. Whether your client is younger, has multiple non-family employees, or has a complex business setup, we’ll work with you to determine the feasibility of a defined benefit or cash balance plan and design a plan that meets your client’s objectives.
Complete an Illustration Request Form. We’ll turn it around within 24 hours.
Our defined benefit specialists are committed to providing exceptional service coupled with over 15 years of expertise. Give us a call with any questions or special requests: 866-269-2706
Experience You Can Trust, Support You Can Count On
Dedicated Defined Benefit Services (Dedicated DB), part of FuturePlan by Ascensus, specializes in the design, marketing, and administration of Defined Benefit and Cash Balance plans for businesses with 1-10 employees. We have opened and administered over 4,500 plans for 1-10 person firms.
Dedicated DB’s depth of experience and high quality support is especially important. We’re on top of critical regulatory changes and master the nuances of these plans. Our Defined Benefit prototype plan is approved by the IRS.
Next Step : 5. Gather Assets Now
Step 5: Gather Assets Now
Contributions Can Start Now
Plans should be opened before the end of the client’s fiscal year-end (typically December 31) for tax savings in this year. But opening a plan now might be beneficial. The sooner the plan is opened, the faster you can work with the client to make investment decisions.
For plans opened before December, we recommend that contributions be limited to 50% of the amount we calculate for you so that plans are not over funded. We will notify you of the full contribution amount once we have the final year-end compensation amount. The client will have until the tax filing deadline, but no later than September 15 with extensions, to fully fund the plan.
Defined Benefit Plan Checklist
- Have you created a Defined Benefit Illustration?
- Have you talked to a plan design consultant at 866-269-2706?
- Does the client want to move forward with a DB or Cash Balance plan?
- Have you or the client completed the Plan Design Questionnaire?
- Has the questionnaire and check for set-up fee been mailed?
- Has your client received and signed the adoption agreement?
Once the adoption agreement has been signed and returned, work with your client to open an investment account, and choose appropriate investments for the DB plan.
Always In The Loop
As part of our commitment to exceptional service, we keep you in touch with periodic dates and alert you to any issues that affect your client’s plan.