Prepare for your own retirement
You can make contributions to your own 401(k) account and simultaneously reduce taxes for your small business. You can contribute significantly more to your personal account and reduces taxes even more by adding a Cash Balance Plan to your 401(k).
Larger contribution to your account
You can personally contribute up to $30,000 (in 2023) to your personal 401(k) account each year. Using the profit sharing feature of your 401(k), you can save up to $73,500 (in 2023) in your account each year. With a properly designed plan, you can keep employee contributions low while maximizing contributions to yourself if desired.
Upgrade Your 401(k)
If you want to save more than allowed by a 401(k), consider a Cash Balance Plan. You can save over $300,000 to your personal retirement account each year.
Tax savings can be extensive
Because plan expenses like contributions are generally tax deductible, you can add significant amounts to your own account and use the business expense to reduce your taxes by over $33,000 per year.
Upgrade Your 401(k)
Because you can make substantially larger contributions to a Cash Balance Plan, you can also generate significantly larger tax savings each year. You can save over $135,000 in taxes each year.
