Qualified plan design
Shelter hundreds of thousands in owner income — and build the retirement you actually want.
Cash balance, defined benefit, and Solo 401(k) plans let profitable owners contribute far more than a SEP or standard 401(k) — often $150K to $300K+ per year in deductible retirement contributions.
How it works
A qualified retirement plan is an IRS-approved structure that lets a business owner deduct contributions today and defer taxes until retirement. The right plan design depends on entity type, age, W-2 comp, and whether you have employees.
For an owner-only or small-employee business, a cash balance plan stacked on top of a safe-harbor 401(k) with profit sharing can push annual deductible contributions well past $200K — dramatically more than a SEP-IRA cap.
Plan design is a specialist discipline: actuarial calculations, non-discrimination testing, TPA coordination, and annual funding decisions. Getting the design right in year one avoids costly corrections later.
You may qualify if
- Your business is generating $250K+ in owner comp/profit
- You want to defer $75K+ per year in taxes
- You have 5+ years until retirement
- You're open to funding contributions annually
What the engagement looks like
01
Fit check
Intake on age, comp, entity structure, and employee census.
02
Design
Actuary models plan options and projected contribution ranges.
03
Adopt
Plan documents, trust setup, and payroll coordination before year-end.
04
Operate
Annual funding, testing, and 5500 filing handled by the TPA.
Case study
Solo dermatologist, S-Corp
Medical practice · Arizona
Situation
A 52-year-old dermatologist was maxing a Solo 401(k) at ~$66K. Her S-Corp generated $580K in net income and she wanted to catch up on retirement savings while lowering her tax bill.
Approach
The specialist designed a cash balance plan stacked on top of her existing safe-harbor 401(k) with profit sharing. Actuarial funding target was set based on a 10-year runway to age 62.
Result
Combined 2024 deductible contributions of ~$248K — reducing federal + state taxable income by the same amount. Estimated first-year tax savings of ~$95K, with a projected retirement balance north of $2.6M at plan termination.
Annual contribution
~$248K
Est. year-1 tax savings
~$95K
Study fee
$10,000
Illustrative example based on typical engagement outcomes. Actual results depend on your specific facts.
10-year projection
Projected tax savings from a qualified plan
Adjust your annual deductible contribution and blended tax rate to estimate savings over 10 years, plus the value if those savings are reinvested at your assumed growth rate.
Annual tax savings
$104,160
10-yr cumulative savings
$1,041,600
10-yr invested value
$1,372,912
Illustrative only. Assumes constant annual contribution, blended marginal rate, and reinvestment of after-tax savings at the assumed growth rate.
Common questions
Do I have to fund it every year?
Cash balance plans require reasonably consistent funding but allow a range each year. The plan design builds in flexibility for lower-profit years.
How is this different from a SEP-IRA?
A SEP caps around $70K per year. A properly designed cash balance + 401(k) combo can allow 3–5x that for the right owner profile.
Ready to see if this fits?
Short intake, no cost, matched with a specialist within days.