Founders and partners earning $1M+ per year don't get much tax relief from maxing out a 401(k).

That's usually when someone brings up a cash balance plan.

At a high level, it's a type of DB plan that can allow much larger tax-deductible contributions than a 401(k) alone. Depending on your age, compensation, and employee demographics, annual deductible contributions can exceed $300,000.

If I were in your position, I'd have a qualified TPA run the analysis. The numbers can be surprisingly compelling.

One thing I think gets overlooked, though is that a retirement plan doesn't eliminate taxes, it defers them.

The real planning opportunity is having a strategy to withdraw those assets tax-efficiently later.

For many business owners, that means using a cash balance plan to reduce taxes during their highest-earning years, then implementing a thoughtful Roth conversion strategy after retirement and before required minimum distributions begin.

I get calls all the time from people who have accumulated multi-million-dollar retirement accounts and are now wondering how to manage the future tax bill.

We can still help at that stage.

But the best outcomes usually come from planning before the money goes into the account, not after.

This is for educational purposes only and isn't tax or legal advice. Cash balance plans should be evaluated with your CPA, a qualified TPA, and ERISA counsel as part of your overall financial plan.