I opened a OnePersonPlus Defined Benefit Plan and put away $150,000 in 2016 and another $120,000 in 2017 and it’s all a deduction. I figure at least 30% of it is a gift from the IRS.
A OnePerson(k) is a retirement savings plan specifically designed for self- employed business owners (including sole proprietorships, corporations, and limited liability corporations). Typically, it allows for higher contributions than a SEP or SIMPLE plan while providing the same tax benefits of a regular 401(k) without the high costs and standard employer/employee structure. The plan combines the features of a 401(k) plan and a profit sharing plan.
Once the plan is established, the business owner can open a Trust investment account at any financial institution and select any marketable investments.
The OnePerson(k) must be set up by the end of the business’ fiscal year, generally, December 31st.
When adding a 401(k) to a Defined Benefit Plan, the 401(k) contribution is limited to salary deferrals and employer contributions of not more than 6.0% unless the plan is covered by the Pension Benefit Guarantee Corporation (PBGC).
Please note these plans must be opened by the end of your fiscal year, usually December 31st