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.
This plan is a good option for self-employed owner-only companies, or an owner and spouse if they need the flexibility of making optional contributions each year. These plans may be used in combination with a defined benefit plan to increase contribution amounts and flexibility of the DB plan.
CALCULATE HOW MUCH YOU COULD CONTRIBUTEA 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.
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.
The OwnersPlus Cash Balance Program gives me an extra $200,000 to invest and gives my employees a boost too.
We increased our W-2 income to max out our retirement savings. With a OnePersonPlus defined benefit and a 401(k), we’ll add $500,000 each year for the next 5 years.
As a realtor, my income is never the same from year to year. With a OnePerson (k), I save about $50,000 in good years but I don’t have to do anything when business is slow.
We’re four partners with vastly different needs – our Cash Balance plan is customized to fit us.
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).
Getting Started
Please note these plans must be opened by the end of your fiscal year, usually December 31st
Are you Eligible?
Call 866-269-2706 to talk to a consultant
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