Introduction A one-owner business often begins as a Sole Proprietorship. Other times, the business is set up as a Limited Liability Company (LLC) without any tax election. In either of these cases, the business would be taxed as a Sole Proprietorship. However, as the business grows, the tax advisor may suggest converting the business to […]

April 29, 2022

Advantages of Taxation as an S Corporation for Defined Benefit Sponsors

This article has been updated for 2022. Contribution backfilling is a powerful strategy that business owners may use in a variety of situations. This article will provide Defined Benefit Plan context for understanding, explain the concept of contribution backfilling, and examine several situations where backfilling in a Defined Benefit Plan may be beneficial. Context: Defined […]

Backfilling a Defined Benefit Plan

April 15, 2021

Defined Benefit Strategy: Contribution Backfilling

This article has been updated for 2022. Early Defined Benefit Adoption It’s human nature to take action as a deadline approaches. For example, why do you think CPAs are busier in April than February? Not surprisingly, it’s the same for clients setting up a Defined Benefit Plan. Historically, we’ve seen Defined Benefit inquiries and setups […]

Setting Up a Defined Benefit Plan Early in the Year

February 26, 2020

Setting Up a Defined Benefit Plan Early in the Year. What Are the Advantages?

This article has been updated for 2022. A side business provides a great opportunity to save for retirement. In fact, a business owner may be able to save and deduct most or all side business income using a Defined Benefit Plan. SEP and 401(k) Plans significantly limit retirement contributions. Defined Benefit Plans, on the other […]

Side Business Defined Benefit

August 26, 2019

The Side Business Defined Benefit Plan. When a Solo K Isn’t Enough.

This article has been updated for 2022. How could a business owner deduct a $900k contribution that is used to fund his own retirement? How is such a large contribution possible when SEPs and 401(k) Plans are limited to ~$60k per year? The answer lies in combining the power of several individual strategies. Strategies that […]

Defined Benefit Contribution Front-load

August 7, 2019

How a Business Owner Deducted a $900k Retirement Contribution in One Year