A Single Person Plus Defined Benefit Plan is a powerful retirement and tax-saving strategy designed for individuals with high self-employment income, including owner-only and family-run businesses. For the right client, these plans can unlock six-figure, tax-deductible contributions, often $100,000 or more per year, while building guaranteed retirement income.

Unlike traditional retirement options, this plan is engineered to maximize contributions, accelerate tax savings, and create long-term wealth for high-earners who want more control and impact from their retirement strategy.

Key Advantages:

• Unmatched Contribution Limits: Make the highest allowable contributions to a qualified retirement plan, often $100,000+ annually, and in some cases up to 100% of compensation, depending on age, income, and plan design.

• Significant Tax Savings: Contributions are fully tax-deductible, dramatically reducing current-year taxable income and freeing up capital that would otherwise go to taxes.

• Tax-Deferred Growth: Plan assets grow tax-deferred, allowing wealth to compound faster than in taxable investment accounts.

• Investment Flexibility: You and your advisors retrain control over investments, with access to stocks, bonds, ETFs, mutual funds, and annuities, aligned with your overall strategy.

• Lower Adjusted Gross Income: Reducing AGI can increase the value of itemized deductions and other tax benefits, amplifying overall tax efficiency.

• Tax-Free Rollover at Retirement: At retirement, or plan termination, assets can be rolled into an IRA tax-free, preserving flexibility and control.

A Single Person Plus Defined Benefit Plan may be an ideal solution if you:

• Earn $100,000 or more annually

• Generate income as a 1099 independent contractor or self-employed professional

• Own an owner-only business or a business with a spouse or family member

• Have a second occupation or side business producing self-employment income

• Want to contribute far more than a SEP-IRA or Solo 401(k) allows

• Have consistent cash flow and can commit to funding the plan for 3-5 years or longer

Why It Matters

For high-earning independent professionals, the Single Person Plus Defined Benefit Plan can be a transformational strategy, converting high taxable income into long-term, tax-advantaged retirement wealth while maintaining compliance and control.

Single Plan Plus is an advanced retirement strategy designed for partnerships, professional firms, and business owners with 2-10 employees who want to dramatically increase their own retirement contributions, without disproportionately increasing employee benefit costs.

By combining a Cash Balance Defined Benefit Plan with a Safe Harbor 401(k) and Profit Sharing Plan, Single Plan Plus allows owners and partners to make significantly larger, tax-deductible contributions, often $150,000 or more per year, while maintaining control over plan design and employee allocations.

Key Advantages

• Substantially Higher Owner Contributions: Business owners may contribute 3-4 times more than what is allowed under traditional retirement plans

• Powerful Tax Savings: Contributions are treated as deductible business expenses, often saving owners tens of thousands of dollars annually in taxes.

• Flexible Partner Allocations: Partners can receive different contribution amounts, allowing contributions to reflect ownership structure, age, and compensation.

• Controlled Employee Benefit Costs: Plans can be designated with distinct employee classes and contribution levels, providing flexibility while keeping overall employee costs predictable.

• Predictable Contributions with Personnel Awareness: Employee contributions are established during plan design and are generally limited; however, changes in staffing can affect required contributions.

• Tax-Deferred Growth: All plan assets grow tax-deferred, allowing retirement savings to compound more efficiently than in taxable accounts.

• Tax-Free Rollover at Retirement: Upon retirement or plan termination, assets from both the Cash Balance and 401(k) plans can be rolled into IRAs, continuing tax-deferred growth until distributions begin.

• Broad Investment Flexibility: Owners and their advisors may choose from a wide range of equities, mutual funds, bonds, ETFs, annuities, and other marketable securities.

Turnkey Plan Administration

Single Plan Plus is supported by full-service, turnkey administration. Our specialists design each plan to align with the business owner’s objectives and manage all aspects of plan setup ongoing administration, government filings, and regulatory compliance, ensuring accuracy, efficiency, and peace of mind.

Who This Strategy is Best For

Single Plan Plus is well-suited for businesses that:

• Have 2-10 employees

• Generate consistent cash flow

• Want to maximize owner and partner contributions

• Seek a balance between large tax savings and controlled employee benefit costs

• Are ready for a long-term, compliant retirement strategy

A 401(k) plan is a flexible, tax-advantaged retirement solution designed for self-employed professionals, business owners, and small companies who want an affordable way to save for retirement while benefiting from meaningful tax incentives.

Whether you qualify for a solo 401(k) or require a group 401(k), the right plan structure can help you maximize contributions, stay compliant, and build long-term wealth, without unnecessary complexity.

Why a 401(k) Makes Sense

• Affordable & Scalable: Our 401(k) plans start at less than $80 per month for administration. As plan assets grow, certain costs may decrease, making this a cost-effective long-term solution.

• Tax-Friendly by Design: Eligible businesses can access up to $16,500 in available tax credits and deductions, along with potential personal tax advantages.* Contributions reduce taxable income and grow tax-deferred.

• Quick & Easy Setup: Plans can be established in under five minutes, with simple online management available from any laptop or mobile device.

• Tax-Deferred Growth: Contributions grow tax-deferred, allowing retirement assets to compound faster than taxable investments.

Solo 401(k) vs. Group 401(k): Why It Maters

Determining whether you qualify for a solo plan or a group plan is a critical first step, as it directly affects how much you can contribute and whether employee funding is required.

Solo 401(k): If you are the only individual working in your business, you may qualify for a solo 401(k), which offers:

• Large, flexible contributions based on IRS limits and plan design

• Minimal administrative complexity

• No discrimination testing

• Funding solely for yourself (and possibly your spouse)

You may qualify. fora solo plan if you are:

• A sole proprietor

• An S-Corp or C-Corp owner who pays yourself wages and files a W-2

• Married to a spouse who works for the business and receives a W-2 (this does not disqualify solo status)

Group 401(k): If your business includes eligible employees, your plan may be classified as a group 401(k). These plans:

• Require discrimination testing

• Limit owner contributions based on employee participation

• Require funding on behalf of eligible employees

• Involve additional administrative considerations

However, having employees does not automatically disqualify you from a solo plan.

Employee Eligibility Rules (When Employees are Present)

Many businesses can still qualify for solo treatment by properly apply eligibility exclusions outlined in the plan document. Common exclusions include:

• Employees under the age of 21

• Employees working fewer than 1,000 hours per year

• Employees hired during the current plan year (entrance date restrictions)

Proper plan design is essential to maintaining flexibility while remaining compliant.

Investment Control & Flexibility

Plan participants and their advisors retain full control over investments, with access to a broad range of options including stocks, mutual funds, ETFs, bonds, annuities, and other marketable securities.

Built for Growth, Profitable Businesses

As specialists in retirement planning for profitable businesses with 1-10 employees, we help clients with retirement planning, whether a 401(k) is the right solution, or whether more advanced strategies like Cash Balance or Defined Benefit plans may provide greater tax advantages.

Free Retirement Plan Illustration

Not sure which plan is right for you? We offer a free illustration to help you compare retirement strategies and identify opportunities to maximize tax savings and long-term wealth.

*Tax credits and deductions are subject to IRS rules and eligibility requirements.