This timely article highlights a solid opportunity for entrepreneurial business owners, and highly compensated professionals to create far larger tax-deductible contributions with specially designed Retirement Plans.

These contributions, in properly designed Defined Benefit Plans, or the newer versions Cash Balance Plans may be greater than the $100,000 per year, as aforementioned in the Forbes piece. They can reach $200-300K or more annually than basic plan designs— per partner, owner, or stockholder.


Even more good news
You may have these plans in addition to your 401k and profit sharing plan contributions.

Good Fits?
Sole Proprietors, Self Employed, S-Corps, LLC’s, Partnerships, C-Corps, K-1 income, virtually any business owner with earned income may be candidates. Even fees and 1099 income from a second business, director’s fees, public speaking, publishing, clinical trials, or other side ventures may qualify.

Notable Notes on the FORBES article—-

“Defined Benefit Plans: The Overlooked Retirement Vehicle for Successful Entrepreneurs” [ link ]

Prior Year Income Plans:
Prior Year’s Income may also be eligible in calculating these plans.

Why call it a Formula 1 Plan (Grand Prix Auto Racing)?
Because unlike basic Stock Car Racing the F1 cars are built to fit specific racetrack layouts, perform beyond normal car limits with far superior engines, brakes, and body design at far greater speeds, with much longer staying power. Isn’t that the world of the “Entrepreneur”, Highly Compensated Professionals, and Elite Partnerships?

How to use this plan to win at the finish line?
Life is about pit stops and adjustments. No auto race is ever won without the car making continual pit stops and going through modifications during the race for better performance, adjustments to changing conditions, longevity, and stop and start. Custom plans have this capability and are designed with your specific needs and goals in mind.

Am I a candidate?
You probably need minimum annual income from your business of at least $400,000 per year.

Hidden Income
Often business owners may appear to have lower income than actually exists. They may show a small W-2, base salary or draw of $50,000 or $100,000 or less per year but get additional distributions, bonuses, and other payouts taking them up into the multi hundred thousand dollar range. There may be one or more K-1s, feeders into management companies, multiple sources and entities may be combined.

Changing and Varying Income
Adjustments are possible to allow for these contingencies during the life of the plan.

Am I too old or close to retirement to start?
Life has changed and many plans are started with principals in their 60s and 70s. You may want to start even one or two years from retirement. These plans may enhance your exit strategy, or provide you with one. Ask us about, “Stop Working, but Don’t Retire” exit strategy.

I Don’t Need More Retirement Income
Maybe you have all you will ever need but this is about tax saving so use this money and tax savings for whatever you want.

Who chooses the investments and holds assets?
You will choose a conservative investment portfolio with the help of your Financial Advisors

Asset Protection
It is the best available and automatically built in.

About Us

We are pioneers in retirement planning, featuring tax-advantaged defined benefit pension plans as exit strategies for high net worth clients. We partner with top industry Advisers to bring their clients preferred solutions to achieve large income tax deductions.


Coral Gables, FL

Call Us

Phone: 1-800-717-4723

Working Hours

Monday-Friday: 9:00am – 5:00pm

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