Tax Strategies for Business Owners

There’s a huge tax benefit for businesses that no one may have told you about. Some business owners can save up to $100K or more in taxes annually, by using three IRS sanctioned tax strategies1.

Tax savings calculator Download the guide

Money Better Spent

Cash Balance Plan

Adding a Cash Balance Plan to a 401(k) Profit Sharing Plan is the most effective plan to help significantly reduce business taxes, because it has much higher contribution limits. Contributions are tax-deductible, so they reduce business taxes and personal taxes; and they grow tax-deferred. Annual contributions in a 401(k) + Profit Sharing + Cash Balance Plan can be more than $330,000. (For owners 60 or older.)

Profit Sharing Feature

Adding a Profit Sharing component to a 401(k) can help significantly reduce business taxes because this plan allows for employer contributions. Employer contributions are tax-deductible, so they reduce business taxes; and they grow tax-deferred. Annual contributions in a 401(k) + Profit Sharing Plan can be as high as $64,500.

401(k) Plan

A 401(k) Plan is an employer-sponsored retirement plan that comes with impactful tax advantages. Contributions made to the plan are deducted from taxable income, so they reduce personal taxes; and they grow tax-deferred. The individual annual contribution limit for a 401(k) plan is $26,000.

Case study

Find out how a business owner can save over $111K in taxes annually and turbo-charge her retirement savings.

Read the Case Study

Tax Savings Calculator

See how much you could be saving with a 401(k) Plan, Profit Sharing and a Cash Balance Plan.

Tell us about yourself
Tell us about your business
Total Plan Contribution
{{ plans.only_401k.chart[0].label }}
{{ plans.profit_sharing_401k.chart[0].label }}
{{ plans.profit_sharing_cash_balance_401k.chart[0].label }}
Total Tax Reduction
{{ plans.only_401k.chart[1].label }}
{{ plans.profit_sharing_401k.chart[1].label }}
{{ plans.profit_sharing_cash_balance_401k.chart[1].label }}

Results

Cash Balance Contribution
401(k) Contribution
Annual Personal Tax Savings
Annual Corporate Tax Savings

401(k) Only

{{ plans.only_401k.dollar_format.total_tax_savings }}

Annual Tax Savings

{{ plans.only_401k.grid.rows.cash_balance }}

Cash Balance Contribution

{{ plans.only_401k.grid.rows.contribution }}

401(k) Contribution

{{ plans.only_401k.grid.rows.personal_savings }}

Annual Personal Tax Savings

{{ plans.only_401k.grid.rows.corporate_savings }}

Annual Corporate Tax Savings

401(k) with Profit Sharing

{{ plans.profit_sharing_401k.dollar_format.total_tax_savings }}

Annual Tax Savings

{{ plans.profit_sharing_401k.grid.rows.cash_balance }}

Cash Balance Contribution

{{ plans.profit_sharing_401k.grid.rows.contribution }}

401(k) Contribution

{{ plans.profit_sharing_401k.grid.rows.personal_savings }}

Annual Personal Tax Savings

{{ plans.profit_sharing_401k.grid.rows.corporate_savings }}

Annual Corporate Tax Savings

401(k) with Profit Sharing and Cash Balance

{{ plans.profit_sharing_cash_balance_401k.dollar_format.total_tax_savings }}

Annual Tax Savings

{{ plans.profit_sharing_cash_balance_401k.grid.rows.cash_balance }}

Cash Balance Contribution

{{ plans.profit_sharing_cash_balance_401k.grid.rows.contribution }}

401(k) Contribution

{{ plans.profit_sharing_cash_balance_401k.grid.rows.personal_savings }}

Annual Personal Tax Savings

{{ plans.profit_sharing_cash_balance_401k.grid.rows.corporate_savings }}

Annual Corporate Tax Savings

Free Tax Savings Guide

What you need to know to unlock huge savings. This guide features information designed to answer your tax savings questions.

Download the Guide

Hear from a small business specialist.

Watch this short video from a Fisher small business specialist to learn how business owners can use IRS sanctioned strategies to reduce their tax burden and turbo-charge their retirement savings.

 

Plan Comparison

Use this handy guide to determine how much pre-tax money you can contribute to your personal retirement plan.

Download the PDF

Additional Resources

Articles

  • Small business owners smiling after saving big on their taxes

    Maximize Your Retirement Savings

    Save big on your personal taxes with a cross-tested profit-sharing plan added to your company's 401(k).

  • Small business owner sitting at lap top doing taxes

    Don't Miss These Extra Savings

    There's a new tax credit that can be as high as $16,500, and it isn't just a tax deduction--it's a tax credit!

  • Female small business owner sitting at laptop doing taxes

    The Powerful Tax Benefit for Business Owners

    Learn about a powerful strategy that helps business owners optimize their retirement program to save big on taxes.

Case Studies

  • High earning medical practice business owner saving money thanks to a profit sharing plan

    Profit Sharing

    See how one business owner saved over $51,000 a year by switching to a New Comparability Profit Sharing Plan.

  • Older small business owner smiling after saving money with a Safe Harbor plan

    Safe Harbor

    Find out how a business owner increased his personal annual contribution with a Safe Harbor 401(k) Plan.

  • Small business owner of medical practice meeting with patient.

    Cash Balance

    Find out how a business owner saved over $111K in taxes annually and turbo-charged her retirement savings.

Videos

  • Small group of employees talking about cash balance plans

    Cash Balance Plans

    Hear from a small business specialist to learn more about Cash Balance Plans.

Guides

  • Tax Savings Guide

    What you need to know to unlock huge savings. This guide features information designed to answer your tax savings questions.

Why Work with Fisher

Fisher redefines what it means to be a partner in retirement by providing superior financial guidance, unparalleled service and simple and easy program administration.

Contact Us

  • Your Interests First

    Incentive structures that are aligned with your success. No revenue sharing, no kick-backs or commissions. When you do better, we do better.

  • DIFY (Do It For You) Approach

    Our servicing solutions focus on doing everything we can for you. From acting as a single point of contact for your plan to selecting your investments, we provide services that many other advisers can’t or won’t provide.

  • Superior Financial Guidance

    As one of America’s top financial advisors, we work with you to optimize your program and provide ongoing one-on-one financial guidance to maximize wealth generation.

  • Small Business Expertise

    We specialize in small business retirement plans. As a result, we act as your advocate and have the knowledge, resources and clout to champion your needs.

  • 1There three strategies may not be a good fit for every business. Consult with a tax professional to determine if all, or some parts of this strategy are a good fit for your business.
  • 2Cash Balance Plans come with some risks and may not be a fit for some businesses. They are complex, and can be inflexible and expensive. Consult with a professional to determine if a Cash Balance Plan makes sense for your business.
Unlock IRS-sanctioned tax benefits.
Tax Savings Guide