Owner DB™ Plans
An Owner DB™ is an excellent option for a company with no employees (other than the owner, or owner & spouse) who wants to make tax deductible contributions to a retirement program of more than $54,000 (the 2015 §415 DC annual additions limit).
- High Annual Contributions — Maximum deductible contributions may be as high as $200,000 (contributions vary based on age and compensation).
- Add a 401(k) to an Owner DB — By adding a 401(k) to a stand-alone Owner DB, owners are allowed additional contributions: $18,000 deferral ($24,000 if age 50 or older as indexed, 2017), plus a profit sharing contribution of up to 6% of compensation.
- Accelerated Savings — Accumulations at retirement may reach $2,000,000, and may be achieved in 10 years or less.
- Investment Flexibility — Plan investments are directed by the plan’s trustees. Benetech does not restrict plan investments.
- Exceptional Value — Low installation and annual administration costs.
Benetech’s on-line proposal service gives you a fee quote and an illustration of the estimated first-year contribution for an Owner DB prospect.
Candidates & Examples
A one-page brochure on characteristics of an owner-only DB prospect, and some representative examples of first-year contributions to an Owner DB + 401(k) program.
Owner DB FAQs
More than you ever wanted to know about owner-only defined benefit plans.
If the prospect does not currently sponsor a retirement plan (e.g., 401(k), DB, SIMPLE, etc.), setting-up an Owner DB Plan is simple.
Owner DB™ Setup 1,2,3 – Takeover
If an existing 401(k) or Defined Benefit Plan is to be taken over, the first step is to gather plan documents and reports.