How Business Owners Can Save Far Beyond a 401(k)

Unlocking Retirement Potential with Defined Benefit Plans

Are you a highly paid professional or business owner looking for ways to maximize your retirement savings while reducing taxes? Do you want to set aside more than what traditional retirement accounts allow? If so, a Defined Benefit (DB) Plan might be exactly what you need.

What is a Defined Benefit Plan?

A Defined Benefit Plan is a qualified retirement plan that promises participants a specified monthly benefit at retirement. Unlike a 401(k) or SEP IRA, where contributions are limited and tied to investment performance, DB Plans allow for significantly larger, tax-deductible contributions designed to fund a guaranteed benefit.

Why Consider a Defined Benefit Plan?

1. Substantially Higher Contribution Limits

Would you like to save far more than the limits of a 401(k) or SEP IRA? With a DB Plan, annual contributions can often be two to three times higher, giving high earners the chance to accelerate retirement savings.

2. Significant Tax Advantages

Are you looking for ways to lower your tax bill? Contributions to a DB Plan are tax-deductible for the business, and assets grow tax-deferred until distribution. This means meaningful tax savings today and powerful growth for the future.

3. Predictable Retirement Income

Do you value certainty? A DB Plan provides a guaranteed retirement benefit, offering the peace of mind of knowing exactly what income you’ll receive when you stop working.

4. Attract and Retain Talent

Would your business benefit from offering employees a unique perk? DB Plans can be a powerful recruitment and retention tool, providing employees with stability that sets you apart from competitors.

5. Flexible Design Options

Do you want a plan tailored to your goals? DB Plans can be customized to maximize contributions, balance benefits across employees, or work alongside existing retirement plans.

Who Benefits Most from a Defined Benefit Plan?

Defined Benefit Plans are especially effective for:

• Business owners or self-employed professionals with high, stable income.

• Individuals age 40+ who want to maximize retirement savings in a shorter time frame.

• Companies looking to provide competitive benefits to key employees.

  
  

Final Thoughts

If you’re ready to supercharge your retirement savings while cutting your tax bill, a Defined Benefit Plan could be the solution. With higher contribution limits, significant tax advantages, and predictable retirement income, it’s one of the most powerful strategies available today.

Curious to see if a Defined Benefit Plan is right for you? Let’s schedule a complimentary consultation to explore the possibilities.