Small Business Owners

Williams Actuarial Group helps small business owners maximize their tax-deferred savings by sponsoring a defined benefit pension plan.

Why a defined benefit pension plan? 
Because of a number of recent changes in federal laws, the defined benefit pension plan has become an attractive way for a small business owner to build tax-deferred savings.

  • Small business owners over age 40 can contribute more to defined benefit plans than to 401(k)/profit sharing plans. Maximum annual contributions:
    - Defined benefit pension plan: $50,000 - $170,000 (roughly)
    - 401(k)/profit sharing plan for 2020: $57,000 + $6,500 if at least age 50
  • Small business owners can maximize tax-deferred savings by contributing to both types of plans.
  • As with a 401(k) plan, benefits accumulate on a tax-deferred basis until they are paid at retirement, termination of employment or termination of the plan. Generally, benefits are paid in a lump sum distribution and may be rolled over to an IRA.

Comprehensive services. Williams Actuarial Group provides all the services you need to design, implement and maintain your pension plan in a way that maximizes your tax-deferred savings. We do not provide investment advice or offer investment products. We are paid for our services directly by our clients and receive no other form of compensation related to your plan. Because we are an independent firm, we can work with your current tax and investment advisors.

Custom plan design. Our plan design is tailored to your needs. Whether it is a cash balance plan for a large law firm or a traditional plan for a physician in solo practice, we design the best plan for you.

Our approach. Although a defined benefit pension plan can be a powerful vehicle for tax-deferred savings, it is not appropriate for every small business owner. Before recommending a plan design, we perform a cost/benefit analysis to ensure that the tax benefit of the plan merits the expense of implementing and maintaining the plan. Our goal is to ensure that you make a good business decision. Request a feasibility study.

Frequently asked questions.
Why sponsor a defined benefit pension plan?
How does a defined benefit pension plan work?
Who is the best candidate for a defined benefit pension plan?
Does the plan cover other employees?
Is a defined benefit pension plan cost effective?
What factors affect the contribution to a defined benefit pension plan?
What are the risks of sponsoring a defined benefit pension plan? 
What plan design changes may be required? 
What are the potential pitfalls of a defined benefit pension plan?