Owner-Only Defined Benefit Plan
Optimal for business owners with no employees.
An owner-only defined benefit plan is a defined benefit plan that is ideal for business owners with no employees other than their spouses (including self-employed individuals, corporations, and partnerships) who desire to maximize their retirement contributions.
What Advantages Come with an Owner-Only Defined Benefit Plan?
Self-employment brings with it great benefits as well as unique difficulties. TrueNorth Retirement Services is uniquely knowledgeable about those important nuances of ownership and self-employment.
One of the greatest benefits to consider with an owner-only defined benefit plan is that your annual contributions are capable of exceeding the typical maximum of other common types of retirement plans allowing you to save and invest more each year.
When should I consider an Owner-Only Plan?
An owner-only defined benefit plan should be considered if you fit the following factors:
- You want to contribute more than $53,000 or 25% of your compensation and deduct those investments from your taxes
- You are willing to contribute for a minimum of three years understanding that if business revenue or conditions shift you can contribute more or less each year as necessary.