When most people hear defined benefit plan, they think of big corporations or union pensions. But here’s the surprise: it can be a game-changing tool for high-earning solo business owners.

🔑 Why it matters:

Unlike a SEP IRA or solo 401(k), contributions aren’t capped by account limits—they’re based on your target retirement benefit.

That means potentially hundreds of thousands in annual tax-deductible contributions, especially if you’re closer to retirement.

For example, someone earning $1M+ who contributes $300,000 could save about $111,000 in federal income taxes.

⚖️ Consider a DB plan if you:- Have steady, high income- Want to contribute well beyond $70k annually- Are within 10–15 years of retirement- Are ready to commit to consistent contributions (with actuarial oversight)

It’s more complex and requires annual actuary involvement, but the tax savings and accelerated retirement funding can be worth it.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.