High-Impact Retirement Plans in Detail

Retirement Plans That Deliver Huge Tax Savings

Defined Benefit (DB) and Cash Balance plans are IRS-approved qualified retirement plans. They allow business owners and self-employed professionals to make large annual tax-deductible contributions that can save tens of thousands of dollars in taxes each year. 

Sounds too good to be true, but they are not.

A Long History with New Uses Today

Defined Benefit plans have been around for decades.  In years past, large corporations used to contribute each year to an employee’s Defined Benefit plan that would then pay a set (defined) benefit to that employee during each year of his/her retirement.

Today, self-employed professionals and business owners can use Defined Benefit plans to fund their own retirement.  The professional is essentially both the company (that funds the plan with tax-deductible contributions) and the ultimate owner and beneficiary of the plan assets in retirement.  Defined Benefit plans work best for self-employed professionals and Cash Balance plans, a type of Defined Benefit plan, work for business owners.

Defined Benefit plans permit owners to contribute much larger amounts than other retirement plans.  These tax-deductible contributions allow owners to dramatically lower their tax bills, while helping to super-charge their retirement savings. 

Over the life of a Defined Benefit or Cash Balance plan, an owner can potentially defer hundreds of thousands of dollars while rapidly and tax-efficiently building a multi-million dollar nest egg

These High-Impact Plans Allow You to Cut Your Tax Bill And Save More For Retirement

The chart illustrates how a 50-year-old self-employed consultant earning $350,000 per year could potentially cut his taxes almost $50,000 per year with a Defined Benefit plan or over $75,000 per year by combining a Defined Benefit plan with a 401(k).  In both cases, he is also saving almost $200,000 or more for retirement.

Defined Benefit Plans Deliver Tremendous Advantages to Qualified Professionals

Highest Potential Contributions

Defined Benefit plans allow the largest tax-deductible contributions among qualified retirement plans.  Contributions vary based on a variety of factors, including owner’s age and income, but they can be as high as $100,000 per year or more.  Professionals in the right situation can combine a DB plan with a 401(k), making even larger, tax-deductible contributions, and further boosting retirement savings.

A 50-year old self-employed consultant making $350,000 per year could invest three to 3 to 4  times as much in a DB plan or a DB Plan with a 401(k) than he could with his 401(k) alone.  

Tremendous Tax Savings

The high contribution levels of DB plans allow plan owners access to larger tax deductions than possible with SEP-IRAs or 401(k)s.  These deductions can add up to big tax savings, in fact $40,000 or more every year.

In this example a 50-year old self-employed consultant with an annual income of $350,000 can potentially cut his tax bill by $70,000 or over $80,000 in a single year by forming a Defined Benefit plan.

Rapid Wealth Creation

The assets you contribute to a DB plan grow tax-deferred. This growth, combined with the higher contribution limits for DB plans, allow you to build a large retirement fund more quickly than you could with other retirement plans.

If the same self-employed consultant puts $190,000 in a Defined Benefit plan every year for ten years, his retirement savings could potentially grow to over $2.6M in 10 years

Easy Rollover

The assets you contribute can be easily rolled over, tax-free to an IRA at retirement (or at plan termination).

Flexible Investments

We work with you to develop an investment strategy suitable for your circumstances.

Simple Set-Up

We walk you through the process from start to finish.

Conservative, More Secure Investment Profile

Investments are tied to a conservative benchmark to avoid dramatic market fluctuations.

More Detail

Read more detail about these powerful tax and retirement savings options and find out if they will work for you.

Tax Savings

How much can you save? Take 1 minute to fill in our short Tax Savings Analysis form and we will help you find out.

Case Studies

Read how these plans have helped other self-employed professionals and business owners save tens of thousands.

About Us

We craft custom retirement plan solutions to maximize clients’ tax savings while rapidly building retirement wealth.