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In reviewing 2025, the biggest mistake high-earning self-employed business owners made was hitting the “retirement savings ceiling.”

If they were contributing to a Solo 401(k) or SEP IRA, their tax deductions were capped at $70,000. If they earned over $200k+, it’s likely they may not have maximized their tax savings.

The New Year Solution: Defined Benefit Plans

By shifting to a Defined Benefit Plan, it may be possible to significantly exceed the limits of a Solo 401(k) or SEP-IRA. For 2026, the IRS has increased the annual benefit limit to $290,000.

Why change now?

• Large Deductions: May lower your 2026 tax bracket.
• Accelerated Savings: Ideal if you are 45+ and need to “catch up” on retirement rapidly, Defined Benefit plans are a great way to accomplish this.
• Tax Deferred Investments: Build wealth faster than with a taxable asset.

Don’t repeat the mistakes of 2025 and delay learning about novel ways of increasing long term savings and lowering tax burdens.

Learn more about the advantages of Defined Benefit plans:

Contact our defined benefit specialists.

We can create custom proposals and design plans to fit your client’s situation.

Call us toll free at: 1-866-269-2706 or email us at dbplans@dedicated-db.com.

Best regards,

Raymond Lee
Director of Sales | Dedicated Defined Benefit Services, part of FuturePlan by Ascensus
E raymond.lee@dedicated-db.com
P (866) 269-2706
www.dedicated-db.com