For business owners

The single largest tax shelter for the right business.

A defined-benefit or cash-balance plan can shelter well over one hundred thousand dollars a year, far beyond 401(k) limits, with every dollar deductible against business income.

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See how it works through one simple example.

Is this you?

You are an older, high, steady earner with a profitable business.
These plans favor owners who are over fifty with strong, reliable income.

Here is the idea, in plain words

A defined-benefit, or cash-balance, plan can shelter well over one hundred thousand dollars a year.

That is far beyond regular 401(k) limits, and every dollar is deductible against your business income.

For the right business, it is the single largest tax shelter available.

What this could be worth

Shelter well over $100,000 a year, fully deductible against business income.
  • 1Confirm your income is high, steady, and likely to continue.
  • 2Have an actuary design the plan and contribution.
  • 3Fund it yearly and deduct the contribution.

Educational guidance, not tax advice. We confirm every figure and your eligibility before you act.

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What to watch out for

The honest version.

  • Contributions are required each year, so steady income matters.
  • If you have employees, you generally must fund for them too.
  • These plans need an actuary and ongoing administration.

Common questions

How much can it shelter?

Often well over one hundred thousand dollars a year, depending on age and income.

Who is it for?

Older owners with high, reliable income, often with few employees.

What is the downside?

Required annual funding and added administration and cost.

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