Defined Benefit Plans

The small business defined benefit (DB) plan is an IRS-approved qualified retirement plan that allows independent professionals and consultants, individuals with self-employment income, and small business owners to make large annual tax-deferred contributions and accumulate as much as $2 Million in just 10 years. In many cases our customized approach will allow 90% of the contributions to go to you, the owner.

Is a Defined Benefit Plan Right For You?

If you’re a sole proprietor, LLC or corporation with 0-25 employees, you may potentially qualify for a tax deduction of $100,000 or more each year against your business income. Our experienced team and 40+ year enrolled pension actuaries design custom retirement plans specifically to meet the tax savings and retirement income needs of people who are:

Interested in contributing more than $50,000 annually to their retirement or a higher percent of compensation than allowed in a 401(k) or SEP
Interested in contributing more than $50,000 annually to their retirement or a higher percent of compensation than allowed in a 401(k) or SEP
Able to make that contribution for at least the next 3-5 years
Earning at least $100,000 annually

Typical plan owners include:

Employees who also receive self-employment income from a side business
Independent contractors, consultants, professionals and sales reps
Business owners with up to twenty-five employees
Self-employed spouses of high income earners

Advantages of Defined Benefit Plans

Highest allowable contributions to a qualified plan — $100,000 - $400,000
Assets are creditor protected under ERISA
Strategic Asset management to avoid large portfolio losses
Reduces adjusted gross income making itemized deductions and personal exemptions worth even more
Build Employee loyalty
Huge annual tax savings
Investments grow tax-deferred building wealth faster than a taxable investment

Defined Benefit Plans