Recent Case Studies

Recent Case Studies – Defined Benefit Plans

Owner Only Business

Case Facts: Independent consultant, age 51, consistent income over $500K Goal: Reduce taxes by making a maximum contribution to qualified plans, retire at 62

Remedy: Fund Defined Benefit (DB) plan and a
Solo (401(k)/Profit Sharing Plan

The Results:

Annual Contribution to plans $215,308
Estimated Tax Savings @44% $94,736
(combined Federal & CA state rates)
Est. accumulation @ retirement $3,228,497

Owner + Spouse Business

Case Facts: Professional athlete with outside

income from endorsements
Goal: Maximum contributions and tax
deductions
Remedy: Max funded Defined Benefit (DB) plan
and EZ‐K (401(k)

The Results:

Annual Contribution both plans $229,995
Estimated Tax Savings @35% $80,498
(top Federal rate, no state rates in TX)

Larger Company with Employees
and Existing 401(k) Plan

Case Facts: LLC with 13 total employees & an

existing 401(k) Profit Sharing plan.
Goal: Two owners seeking increased tax
deductions without increasing contributions for
employees.
Remedy: Fund Cross‐Tested, Carve‐Out DB plan
on top of existing K/PS plan

The Results:

Total Contribution both plans $680,669
Estimated Tax Savings @ 41% $279,074
(combined Federal and NC state rates)
2 Owners share of contributions 91.7%

Combo Plan Sale

Case Facts: Family owned & operated “C”

corporation with 7 employees total, 5 of which are
family members.
Goal: Reduce taxes and provide benefits for
family members.
Remedy: Fund a Defined Benefit Plan and a
stand‐alone 401(k) Profit Sharing Plan

The Results:

Total Deductible Contributions $457,348
Tax Savings @44% $201,233
(combined Federal & NJ state rates)
Family’s share of Contributions 97.8%

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