Introduction: How Are Defined Benefit Plans Taxed? Defined Benefit Plans are a powerful retirement and tax planning tool. In this article, we will explain how Defined Benefit Plans are taxed. We will start by describing how Defined Benefit Plans are funded and distributed. Next, how the employer and employee are taxed. Last, we will explain […]

How are Defined Benefit Plans Taxed

July 1, 2020

How are Defined Benefit Plans Taxed? Impact on Income and Payroll Taxes.

This article has been updated for 2020. How much is the lifetime limit for a Defined Benefit Plan? Many business owners, financial advisors and CPAs ask us this question. Before we go any further, let’s define what we mean by a lifetime limit. Simply put, it is the maximum lump sum distribution that can be […]

Defined Benefit Plan Lifetime

July 12, 2019

Defined Benefit Plan Lifetime Limit. How Much Can Be Paid Out?

This article has been updated for 2020. If you are self-employed, a Defined Benefit Plan is a powerful tool. In fact, for the right business owner, there is no other tool quite like it. Here are 14 reasons to set up a Self-Employed Defined Benefit Plan in 2020: 1. Self-Employed Defined Benefit Plans Allow Large […]

defined benefit plan self employed

May 1, 2019

14 Reasons to Set Up a Self-Employed Defined Benefit Plan in 2020

This article has been updated for 2020. How much can you save in a Defined Benefit Plan? If you’ve read our prior posts, you know that Defined Benefit Plans allow for substantial, tax-deductible retirement contributions. In fact, for high-income business owners, a Defined Benefit Plan (“DB Plan”) is often an ideal vehicle. Just how much can […]

How Much Can You Save in a Defined Benefit Plan?

January 18, 2019

How Much Can You Save in a Defined Benefit Plan? Quite a Bit!

This article has been updated for 2020. What is a Defined Benefit Plan? How do Defined Benefit Plans Work? Would a Defined Benefit help you and your business? These are some of the questions we will be answering in this post. If you haven’t seen the Defined Benefit Plan Overview, consider starting there. In this […]

How Defined Benefit Plans Work

January 3, 2019

How Do Defined Benefit Plans Work? Would a Plan Reduce Your Taxes?