The deadline for opening a DB plan just got sweeter. Why?

23rd Mar 2021

This deadline extension means more time for a 2020 plan.


How does the IRS’s tax filing deadline extension now help another deadline?

The SECURE Act’s modified deadline for opening a Defined Benefit plan just got sweeter – with a boost from this year’s IRS tax filing deadline extension. As a reminder, the deadline for a business to establish a plan previously had been extended to a business’s tax filing due date (including extensions). Therefore high income, self-employed professionals now have even more time to open a Defined Benefit or Cash Balance plan for the 2020 tax year.

Great news for Sole Props! Here’s a client example that illustrates why…

A financial planner that is a sole proprietorship wants to create a new Defined Benefit plan. The company’s fiscal year ended December 31st and its tax return deadline for the 2020 tax year is May 17th (adjusted for the IRS’s tax filing deadline extension).

Because of the SECURE Act’s provision, this year the small business can adopt the plan by May 17th for the 2020 plan year. Also the business can set up a solo 401(k), to maximize contributions.

Need help identifying the right candidate for a Defined Benefit plan? Feel free to ask me or any of our Plan Design Consultants. We’re happy to help and easy to talk to. Thanks.



Best regards,

Raymond Lee

Raymond Lee
Director of Sales | Dedicated Defined Benefit Services, part of FuturePlan by Ascensus

(866) 269-2706

 Dedicated DB Logo



Dedicated DB@ DedicatedDB

Need help making your #retirementplan? Self-employed? Our consultants are here to help.

2:03 AM 18 August 2022

Dedicated DB@ DedicatedDB

5 reasons Americans are #retiring later in life.

1:59 AM 18 August 2022

Dedicated DB@ DedicatedDB

Small business owners, keep your retirement on track with a #DefinedBenefitPlan. Speak with a plan design consultan…

1:35 AM 18 August 2022

Dedicated DB@ DedicatedDB

Here are 9 #retirement strategies to protect against inflation and stock market decline.

1:14 AM 18 August 2022

Dedicated DB@ DedicatedDB

Are you on track to reach your #retirement goals? Let our team of experts help you make the most of your income.

10:03 PM 11 August 2022

Dedicated DB@ DedicatedDB

12 Worst states for living in #retirement in 2022.

9:57 PM 11 August 2022

Estimate contribution and deduction with our DB calculator Try it now