A solo(cb) is a cash balance plan designed specifically for the self-employed individuals.
Because solo(cb) is a type of defined benefit plan, it offers access to contribution limits which may not otherwise be accessible in another retirement plan, such as a solo 401(k), SEP or SIMPLE IRA.
A self-employed individual’s ability to start a solo(cb) plan is driven by two key requirements: business type and income.
Eligible businesses include:
The solo(cb) plan may be appropriate for self-employed individuals who:
For a successful self-employed individual, a solo(cb) may offer substantial advantages, including tax management, retirement income security and risk mitigation. Paired up with a Solo(k) plan, a solo(cb) can become a powerful engine for retirement distributions, combining tax-deferred and tax-free income sources.