Is A Defined Benefit Plan Right For You?
A Powerful Tool for Qualified Self-Employed Professionals
Defined Benefit plans do not work for everyone. In fact, they are often overlooked as a tax savings and retirement building tool because relatively few individuals are in the right circumstances to use them. For high-income, self-employed professionals and small business owners, however, Defined Benefit plans can deliver a powerful, tax-advantaged strategy for building a large retirement nest egg.
The best candidates for Defined Benefit plans are high-income professionals who:
- Have self-employment income (1099 and/or W-2) from:
- A sole proprietorship, S-Corp or LLC, or
- Have side income from freelance work
- Are self-employed spouses of high-income earner
- Are 40 years of age or older
- Earn at least $100,000 annually
- Are willing and able to contribute more than $50,000 per year to a retirement plan for at least 3 consecutive years,
- Would like to contribute a higher percentage of their compensation to a retirement plan than allowed under a 401(k) or SEP-IRA
Typical professions well suited to Defined Benefit plans include:
- Graphic Designers
- Independent Corporate Directors
- Independent Insurance Agents
- Mortgage Brokers
- Physicians, including locum tenens
- Real Estate Agents
- Small Business Owners
- Software Developers
To find out more about how these plans help professionals, read our Case Studies:
Are You a Business Owner With Employees?
For business owners with 0 – 10 employees, a Cash Balance plan may be a better option for you. Read more about Cash Balance Plans here:
Read more detail about these powerful tax and retirement savings options and find out if they will work for you.
How much can you save? Take 1 minute to fill in our short Tax Savings Analysis form and we will help you find out.
Read how these plans have helped other self-employed professionals and business owners save tens of thousands.
We craft custom retirement plan solutions to maximize clients’ tax savings while rapidly building retirement wealth.