Are You Using Every Tool Available to You?

Most business owners know about the 401(k). Fewer know there are strategies that can be stacked on top of it.

For high-income business owners, there are often three retirement planning tools that can work together: employee 401(k) contributions, profit-sharing contributions, and a defined benefit cash balance plan.

That third piece is where many business owners leave opportunities unexplored. A cash balance plan is a type of defined benefit plan, similar to a traditional pension, but designed in a way that can provide more flexibility for today's business owners.

Cash balance plans aren't for everyone, but for the right business owner they can create substantial tax deductions while accelerating retirement savings. In some cases, they can allow six figures of income to be moved out of the current year's taxable income while building a meaningful future benefit.