Helping Small Business Owners Catch Up on Retirement Savings
In this case study, we break down how October Three helped two owners of a small business achieve greater retirement savings, reduce tax liability, and establish consistent retirement plan costs for employees.
Situation
A husband-and-wife team running a business with 10 employees sponsored a 401(k)/Profit Sharing Plan. Having invested heavily in growing their company, the owners found themselves with minimal retirement savings and sought a way to catch up while managing staff benefit costs.
Their goals included maximizing retirement savings to catch up, reducing their annual tax liability, and controlling staff retirement plan costs.
Approach
After a strategic retirement plan assessment, including detailed plan illustrations, the firm introduced a flexible market-based cash balance plan tailored to their needs. The customized solution allowed the owners to max out their 401(k) contributions and increase profit-sharing amounts for themselves while maintaining staff contributions at 5% of compensation.
Results
This thoughtful redesign empowered the owners to accelerate retirement readiness without compromising their commitment to staff benefits or business growth. Results included:
The owners doubled their annual deferrals
Tax liability reductions of over $25,000 each
Tripling of their retirement plan savings over five years
Start Designing Your Plan Today
Whether you want to reward key executives, reduce tax exposure, or boost retention with long-term wealth-building benefits, a cash balance plan can help. Reach out to our team to request your free cash balance illustration today.