Defined Benefit and Cash Balance plans allow clients the largest yearly retirement contributions — averaging $133,000 based on 2015-2017 first year contributions — while saving huge amounts in taxes. Our unique programs are designed for high-income self-employed individuals and businesses with 2 to 10 employees. Depending on the situation, business owners may be able to save over $2.6 million for retirement in just 10 years. The plans’ open architecture allows assets to be invested in mutual funds, bonds, equities, annuities, or any other marketable securities that advisors and clients select.
Age: |
35 |
40 |
45 |
50 |
55 |
60 |
65 |
Income |
Annual Contribution |
||||||
$50,000 |
$20,600 |
$25,400 |
$33,800 |
$40,800 |
$49,200 |
$49,900 |
$44,000 |
$100,000 |
$41,300 |
$50,900 |
$67,600 |
$81,600 |
$98,500 |
$99,800 |
$88,000 |
$150,000 |
$62,000 |
$76,400 |
$101,500 |
$122,400 |
$145,800 |
$149,700 |
$132,000 |
$200,000 |
$82,600 |
$101,900 |
$135,300 |
$163,300 |
$197,000 |
$199,600 |
$176,100 |
$250,000 |
$95,000 |
$117,200 |
$155,600 |
$187,800 |
$226,600 |
$229,500 |
$220,100 |
Good Prospects for DB Plan |
A defined benefit plan is an IRS-approved retirement plan that allows qualifying small business owners to make significant tax-deductible contributions each year. Cash balance plans are a type of defined benefit plan. The contribution amount for these plans is calculated based on a number of factors:
Plans should be opened by the business’ tax filing deadline including extensions for the plan year.
The best plan for a profitable small business will depend on the number of employees and the owner’s cash flow outlook.
OnePersonPlus is a traditional defined benefit plan best suited for owner-only and family businesses. Business owners contribute $100,000+ on average each year toward retirement wealth which is tax deferred. In certain situations, they can combine this plan with a OnePerson(k) to increase contributions and flexibility.
Learn MoreOwnersPlus Retirement Program combines a cash balance defined benefit plan with a safe harbor 401(k)/profit sharing plan. The program allows business owners with a few employees to make large deductible contributions for themselves, up to $200,000 or more while controlling the total cost of employee retirement benefits.
Learn MoreWith lower contribution limits than Defined Benefit plans, this plan is a good option for owner-only or family companies that need the flexibility of making optional contributions each year.
Learn More