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.