This article has been updated for 2025. 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 […]
This article has been updated for 2025. Introduction Saber Pension has discussed Defined Benefit Plans as a guest on several podcasts. In this post, we have provided the Defined Benefit Plan podcast transcripts and access to the full shows. Note that we have made minor edits to the transcripts for readability purposes. For your convenience, […]
This article has been updated for 2025. 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 […]
This article has been updated for 2025. Background: Locum Tenens Retirement Are you a locum tenens worker? If so, planning for your retirement is critical. For example, you likely are not enrolled in an employer-sponsored retirement plan. In other words, saving for retirement is your responsibility. However, being self-employed provides a broader range of options […]
This article has been updated for 2025. Defined Benefit Plan Target Return Rate What investment return should I target in a Defined Benefit Plan? Financial advisors ask us this question quite a bit. While we cannot give investment advice, we will provide you with the information needed to arrive at your own conclusion. Specifically, we […]
This article has been updated for 2025. The Impact of Investment Returns How do investment returns impact Defined Benefit Plan contributions? In this article, we will explore that question in depth. At a high level, the impact of investment returns depends on several factors, including the Defined Benefit Plan’s funded status, the size of the […]
This article has been updated for 2025. Introduction In a Defined Benefit Plan, a business owner is able to make high deductible contributions ($100k to $250k+). Of course, large contributions lead to a large asset pool, so it is important to select a qualified financial advisor to manage Defined Benefit Plan assets. Defined Benefit Financial […]
This article has been updated for 2025. 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 […]
This article has been updated for 2025. 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 $70,000 and $77,500, respectively, per year? The answer lies in combining the power of several individual […]
This article has been updated for 2025. Defined Benefit Plan Contribution Range Previously, we discussed the maximum payment you can receive from a Defined Benefit Plan. In this post, rather than focusing on the maximum payout or “lifetime limit”, we will explain the maximum annual contribution. Additionally, contributions in Defined Benefit Plans (“DB Plans”) are not […]
