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

(866) 269-2706




Dedicated DB@ DedicatedDB

Financial Planning Lessons Regular Folks Can Learn from Professional Athletes via @kiplinger #financialplanning

8:50 PM 16 April 2021

Dedicated DB@ DedicatedDB

Coinbase co-founders met on Reddit and launched the company out of a 2-bedroom apartment when a bitcoin was worth $…

7:43 PM 16 April 2021

Dedicated DB@ DedicatedDB

Are you a high-income, small business owner and need tax savings? See how much you can save with our do-it-yourself…

6:43 PM 16 April 2021

Dedicated DB@ DedicatedDB

4 Ways For The Self-Employed To Save For Retirement and Minimize Taxes via @forbes #retirementplanning #taxsavings

5:23 PM 16 April 2021

Dedicated DB@ DedicatedDB

70% of Americans want a side hustle: Here’s where to start via @CNBCMakeIt #sidehustle #gigeconomy

5:33 PM 15 April 2021

Dedicated DB@ DedicatedDB

Thinking about opening a Defined Benefit retirement plan? Here’s how to get started #definedbenefitplan

9:32 PM 14 April 2021

Estimate contribution and deduction with our DB calculator Try it now

Send this to a friend