Defined Benefit plans for high income self-employed individuals, professionals, and small business owners can provide dramatic current year tax savings. Large, tax-deductible contributions to a personal Defined Benefit (DB) retirement plan can increase retirement savings by $1-2.6 million in 5-10 years.
Defined Benefit pension plans are approved by the IRS and work best for:
An individual’s maximum contribution for a defined benefit pension plan is calculated based on age, income and years in the business. In general, the older the business owner is, the higher the contribution.