New Tax Advantage of High Contribution Plans
If your clients earn high income from self-employment or a small business as a sole proprietorship, partnership, or S corporation, a high-contribution retirement plan, such as a defined benefit or cash balance plan, may provide an added tax-saving benefit for the next several years. For some clients, the large deductible contributions reduce taxable income below certain income thresholds to qualify for the 20% pass-through deduction on qualified business income.
OnePersonPlus® is an IRS-approved Defined Benefit Plan for high income self-employed individuals, owner-only and family businesses. In 2017, clients who opened our OnePersonPlus® Defined Benefit plans had a median plan contribution and deduction of $133,000. Annual contributions are required.
For business owners with employees, an OwnersPlus™ Cash Balance and 401(k) program may provide high contributions for owners while limiting the cost of retirement benefits for employees.