Traditional Defined Benefit plan designed to meet the tax savings and retirement income needs of individuals with high self-employment income and owner-only or family businesses. These plans provide large tax-deductible contributions averaging $100,000+ annually.

Key Advantages of Single Person Plus Defined Benefit Plan:

Allows the highest contributions to a qualified plan – $100,000 or more and as much as 100% of compensation, depending on a number of factors

Contributions are fully tax deductible – saving huge amounts in taxes

Investments grow tax-deferred building wealth faster than a taxable investment

Clients and their advisors may invest plan contributions in marketable securities, such as stocks, bonds, ETFs, mutual funds, and annuities, they choose

Reduces adjusted gross income making itemized deductions and personal exemptions worth even more

Tax-free roll over to an IRA at retirement (or at plan termination)

Single Person Plus has the potential to be a powerful retirement plan solution for people who are:

Earning $100,000 or more annually in one of these ways

As primary income for an owner-only business or owner plus spouse or other family member

Has a second occupation or source of income in which individual works for himself or herself

Is considered an independent contractor rather than an employee

Interested in making larger contributions than allowed in a SEP-IRA or 401(k)

Likely to have cash flow to make contributions for 3-5 years or longer

Single Plan Plus is a retirement program for partnerships, professionals, and business owners with 2-10 employees. By combining a Cash Balance Defined Benefit plan and a Safe Harbor 401(k)/Profit Sharing plan, Single Plan Plus gives business owners the potential to make very large deductible contributions for themselves — often $150,000 or more annually — while limiting the total cost of benefits for employees.

Key Advantages of Single Plan Plus Cash Balance + 401(k) Plans

Owners potentially can contribute three or four times what they can to other plans

Contributions are deductible business expenses generally saving the owner tens of thousands of dollars in annual taxes

Partners can receive different contribution amounts

Owner can set different “classes” and contribution levels for employee groups which provides for more flexibility in allocating employee benefits

Contributions on behalf of employees are limited and established during plan design. However, changes in personnel will impact required contributions.

Investments grow tax deferred, building wealth faster

At retirement (or at plan termination), assets in both the Cash Balance and the 401(k) plans are rolled into IRAs and continue to grow tax-deferred until withdrawn

Clients and their advisors can choose any equities, mutual funds, bonds, annuities or other marketable securities to fund their plans

Turnkey administration by specialists who design plans tailored to meet each business owner’s objectives and handle all paperwork related to plan set-up and ongoing government compliance and reporting.

Affordable

Our 401(k) plans start at less than $80/month for administration. As plan assets increase, some costs will decrease.

Tax Friendly

Enjoy up to $16,500 in business tax credits1 and deductions, plus potential personal tax benefits*.

Quick & Easy

Purchase takes less than five minutes. Manage your plan online from a laptop or mobile device.

Determining whether you qualify for a solo plan or a group plan is crucial because it determines whether you can fund a plan for yourself only or if you must fund the plan for your employees as well.

If you have a solo plan, your funding will be based on IRS rules and any restrictions mentioned in your plan document. This offers minimal restrictions and typically allows for large and flexible contributions.

However, if you have a group plan, you will be required to do discrimination testing. This means that your plan will become more complex, and the amount you can fund will be limited, while also requiring you to fund the plan for your employees.

If you are an S-Corp, C-Corp, or sole proprietor, and you are the only person working for the company, then you will qualify for a solo plan. For most people, the definition of a solo plan is relatively simple. If you are a sole proprietor, you do not need to pay yourself a wage and file form W-2, but you will have to do this to be an employee under an S-Corp or C-Corp structure.

If your spouse works for the company and receives a salary and form W-2, your spouse will not disqualify you from solo status. The critical ingredient is that you are married and employed under this structure, which allows you to be deemed a solo plan.

If you have employees, you are not automatically a group plan. Fortunately, your employees will still need to meet minimum eligibility requirements to receive funding under the plan. These exclusions and limitations have been documented in your plan document. As such, you could have employees but still qualify under the solo rules.

There are three main employee types that you can exclude from the plan. You can exclude employees under the age of 21, restrict participation based on the number of hours employees work during the plan year, limiting the plan to only those employees that work over 1,000 hours. You can also exclude any employees who started working for the company during the year under consideration, which is called the entrance date restriction.