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Maximize your clients' retirement.
Minimize their taxes.

Defined-benefit pension plans give your high-income clients the most powerful — and most underutilized — pre-tax wealth-building tool still available. We design and run them; you keep the relationship.

Up to $290K
2026 annual benefit limitIRC §415(b)
$2.95M+
Illustrative accumulation needed to fund the maximum benefit by age 62*
100% Protected
Shielded from creditors and fully IRS-approved
Overview

Are your clients leaving hundreds of thousands of dollars on the table every year?

For your high-income self-employed clients, professionals, and small business owners, a Defined Benefit (DB) Pension Plan is one of the most powerful — and most underutilized — wealth-building tools available.

With the potential to contribute and deduct far more than any other retirement vehicle, a DB plan can add $1 million to $2.6 million to a client's retirement savings in just 5–10 years — while slashing their current tax bill.

Is it right for your client?
DB plans deliver their greatest advantage to clients who need to catch up on retirement savings quickly — and have the income to support larger contributions.

A client is an ideal candidate if they fit one of the profiles to the right. The structure rewards consistent income and a defined retirement horizon — exactly the clients you already serve.

Your client is an ideal candidate if they are
An independent contractor, consultant, physician, real estate agent, or sales professional.
An employed individual who also earns self-employment income from a side business, royalties, or residuals.
An owner-only, owner-and-spouse, or family-run business.
The self-employed spouse of a high-income earner looking to maximize household tax savings.
Pro tip

The older your client is, the higher their allowable contribution — and the larger their deduction. For clients who are 50+ and serious about retirement, there may be no better plan you can bring to the table.

How it works

Predictable benefits, powerful deductions.

01
Project the benefit
An enrolled actuary calculates the client's future projected retirement benefit each year.
02
Determine funding
A contribution amount is set to fund that benefit — fully tax deductible for the client.
03
Contribute & deduct
The client contributes and deducts that amount, reducing their current-year taxable income substantially.
04
Grow tax-deferred
The benefit grows tax-deferred, with no dependence on market performance.
Why DB plans stand apart

The benefits that set defined-benefit plans apart.

Unlike a 401(k) or profit-sharing plan, a defined-benefit plan focuses on the outcome — a specific, guaranteed retirement benefit — rather than the contribution.

Unmatched tax deductions
Your client contributes — and deducts — far more than any other retirement plan allows. Under IRC §415(b), the annual benefit can be funded up to 100% of the client's highest 3-year average compensation, not to exceed $290,000 (2026), requiring contributions that often dwarf what any other plan allows.
Guaranteed retirement income
The benefit is pre-established, not subject to market swings. Your client knows exactly what they'll receive at retirement — no guessing, no volatility risk.
Government-backed security
Most benefits are federally insured up to an annual maximum through the Pension Benefit Guaranty Corporation (PBGC).
Total creditor protection
Assets in a DB plan are fully shielded from creditors and legal judgments — critical protection for clients in high-liability fields.
Flexible alongside other plans
A DB plan can coexist with other retirement plans your client already has, giving them multiple tax-advantaged accounts working simultaneously.
Rapid wealth accumulation
Even with a compressed timeline or early retirement target, substantial benefits can be accrued quickly — no decades-long runway required.
Know the difference

Defined benefit vs. defined contribution.

Many business owners default to a 401(k) or profit-sharing plan without realizing they may qualify for significantly higher deductions through a DB plan. Here's how they stack up when you bring the comparison to a client.

 
Defined benefit plan
Defined contribution plan
Contribution limit
Actuarially determined; annual benefit up to $290,000 (2026)
Up to $72,000/year (2026 §415(c) limit)
Tax deduction
Potentially massive — age-based
Moderate
Retirement benefit
Guaranteed, pre-set formula
Depends on investment performance
Ideal candidate
Older, high-income owners catching up
Younger owners or those with fluctuating income
Market risk
None — benefit is fixed
Full — tied to portfolio returns
Annual contribution
Generally required
Flexible / optional
Creditor protection
Fully protected
Varies
Bonus option
Have a client who wants the security of a defined benefit with the simplicity of an individual account? A cash balance plan may be the answer.

Cash balance plans are a hybrid: they guarantee a retirement benefit like a traditional DB plan — with federal insurance backing — but display that benefit as an individual account balance the client can track in real time.

When the client leaves, their vested balance is portable — roll it to an IRA or a new employer's plan.Significant tax implications apply; clients should consult their tax advisor.
Related planning areas

Often used together.

Ready to bring this to your clients?

Let's design the plan — you keep the relationship.

A defined-benefit plan is one of the most strategic moves a high-income client can make, and one of the most valuable conversations you can lead. Our team designs, implements, and manages DB plans behind the scenes — tailored to each client's income, timeline, and retirement goals — while you stay front and center as their advisor.

We don't sell products.
We design solutions.
We don't replace advisors.
We empower them.
We don't focus on transactions.
We focus on outcomes.

* The $2.95M+ accumulation figure is an actuarial illustration based on IRS mortality tables and assumed earnings rates. Actual amounts will vary based on individual age, compensation history, plan assumptions, and investment performance. This figure is not a guarantee.

Dollar limits reflect 2026 IRS thresholds under IRC §415 and are subject to annual cost-of-living adjustments. This material is for informational purposes only and does not constitute tax, legal, or investment advice. Consult a qualified tax professional or enrolled actuary before establishing a retirement plan.