For business owners over 50
A retirement plan built for owners who are done overpaying the IRS.
For business owners over fifty with more than $200,000 in annual profit who can put six figures a year toward retirement — tax-deductible, on a defined schedule.
In Drew’s Words
Cash Balance Plans
Simply Explained
A cash balance plan is a type of defined benefit plan that lets an owner over fifty contribute far more than a 401(k) allows — often well into six figures a year, depending on age and income — and deduct nearly all of it against business income.
It's not a fit for every business. It works best for an owner (or a small group of owners) with strong, consistent profit who is meaningfully older than most of the rest of the census, because plan design and cost are driven by age and salary.
This is a narrow strategy, and it's deliberately not widely marketed in this market — which is exactly why it's worth a real conversation if you fit the profile.
How It Works
Feasibility review
We look at your age, income, business structure, and existing plans to see whether the numbers actually work in your favor.
Plan design
Working alongside an actuary, we design contribution levels and plan terms specific to your business and its census.
Implementation
The plan is set up and coordinated with your CPA so the deduction lands correctly on your business return.
Annual administration
Cash balance plans require ongoing actuarial administration — we manage that relationship so it isn't one more thing on your plate.
Who this is for
- Business owners over 50 with $200,000+ in consistent annual profit
- Owners who've maxed out a 401(k) and still want to shelter significantly more from taxes
- Businesses with a small, older ownership group relative to the broader employee census
Who this isn’t for
- Newer businesses without a track record of consistent profit
- Businesses with a large, younger employee census, where plan cost outweighs the owner's benefit
Questions
How much can I actually contribute to a cash balance plan?
It depends heavily on age and income — contribution limits are actuarially calculated per person, not a flat IRS number like a 401(k). For an owner in their 50s or 60s with strong income, annual contributions can run into six figures. A feasibility review is the only way to know your actual number.
How is this different from a 401(k) or SEP IRA?
A 401(k) and SEP IRA are defined contribution plans with fixed IRS contribution limits for everyone. A cash balance plan is a defined benefit plan, where the contribution is calculated to fund a target retirement benefit — which is what allows older, higher-income owners to contribute so much more.
What if my business has employees?
Cash balance plans can still work with employees, but plan cost is driven by the age and pay of everyone covered, not just the owner. Part of the feasibility review is modeling what the plan costs for your specific census before you commit to anything.
Can I combine this with a 401(k)?
Yes — cash balance plans are commonly paired with an existing 401(k) profit-sharing plan, which is often how owners reach the highest total contribution levels available under the tax code.
Related services
Planning rarely stops at one decision. These are the pieces that most often sit alongside cash balance planning.
- Tax Planning
Your investment decisions and your tax strategy, built by the same team, under one roof — instead of an advisor and a CPA who've never spoken.
- MSO Deferral Plans
Nonqualified deferred compensation structured through a management services organization — for owners whose income far outruns what qualified plans can shelter.
- Business Valuation
A defensible valuation of your business — the figure your exit plan, your estate plan, and your tax strategy all quietly depend on.