When establishing a defined benefit plan, TheCPAaid's primary objective is to allocate a significant portion, typically around 80-90 percent, of employer contributions back to the owner. This strategic allocation aims to reduce the business owner's income taxes, resulting in overall savings. By implementing a defined benefit plan, business owners can strategically redirect their funds to maximize available tax advantages. The contributions made on behalf of the owner are carefully structured to minimize tax liabilities while ensuring compliance with regulatory requirements. This approach allows business owners to retain a substantial portion of the employer contributions, providing them with additional funds for various purposes such as business growth, retirement planning, or personal needs. With TheCPAaid's expertise, the defined benefit plan is set up to optimize tax savings and navigate the complexities of tax planning within the bounds of legal and regulatory guidelines. This ultimately helps business owners retain more of their hard-earned money for their financial well-being.

Click the link below to access the Defined Benefit Proposal Form

Client Example

Below is a client TheCPAaid helped save the CPAs client $92,557 in taxes that would've been paid to the IRS.