WHAT IS A SOLO(CB)?

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.

• Sample Contribution Opportunity:*
• 35 $70,000
• 40 $90,000
• 45 $116,000

WHO IS ELIGIBLE?

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:

• An unincorporated business that employs only the business owner and spouse
• A partnership that employs only partners or partners and their spouses
• Corporations (or an LLC taxed as a corporation) that employ only shareholders and their spouses

Income qualifications include:

• An individual needs to have income from self-employment
• Income should be substantial and recurring

WHO IS IT FOR?

The solo(cb) plan may be appropriate for self-employed individuals who:

• Are able to contribute a significant amount of earnings from self-employment for a period of three years or longer
• Look for opportunities to increase their deductions
• Want to establish a retirement plan, but plan options outside of a solo(cb) do not meet their contribution goals
• Have delayed saving for retirement and need to catch up
• In addition to W-2 wages from full-time employment, have self-employment income that they would like to invest on a pre-tax basis for retirement
• Wish to quickly diversify their retirement savings with contributions to a retirement plan account because their investment strategy to date may have consisted primarily of illiquid investments (e.g., real estate)

LEARN MORE

• 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.