Retirement Actuarial Services
Designer DB Plus® Explained
Designer DB Plus is a coordinated three-layer strategy that evaluates tax reduction, retirement accumulation, and medical planning in a single design.
Designer DB Plus® is a coordinated three-layer planning strategy that may combine a Cash Balance Plan, a coordinated 401(k) and profit sharing plan, and a 401(h) medical reimbursement account. Rather than treating each plan as a separate product, the approach evaluates them together — so tax reduction, retirement accumulation, long-term medical expense planning, and creditor-protection considerations are weighed in one design.
The three layers
Layer 1: Cash Balance Plan
The foundation. A defined benefit plan that can permit large, deductible employer contributions and long-term tax-deferred accumulation for eligible owners — often the single largest deduction in the design.
Layer 2: Coordinated 401(k) + Profit Sharing
The defined contribution layer. Employee deferrals and a profit sharing allocation are designed to work with the Cash Balance Plan, the employee census, and IRS testing requirements — not bolted on as an afterthought.
Layer 3: 401(h) Medical Account
The medical layer. Attached to the qualified pension plan, a 401(h) account may provide tax-deductible funding, tax-deferred growth, and tax-free reimbursement for eligible retirement medical expenses.
The value of the strategy is in the coordination. Each layer solves a different problem — deduction size, employee benefit design, and retirement medical costs — and the design tests how they fit together for your specific facts.
Who it is built for
Designer DB Plus is not for every business owner. It is most relevant for owners with strong, stable income, suitable employee demographics, and a desire to fund retirement well beyond standard plan limits. Owners closer to retirement age and those with favorable staff profiles typically see the strongest results.
What it is designed to deliver
- Tax efficiency — large, deductible contributions when the facts support them.
- Retirement accumulation — substantial tax-deferred growth across the layers.
- Medical planning — a dedicated, tax-advantaged pool for retirement health costs.
- Long-term protection — qualified plan assets generally receive strong creditor-protection treatment.
From concept to implementation
The strategy begins with a screen, moves to a feasibility study using your real compensation and census, and is finalized only after coordinated review with your CPA and certified actuarial oversight. The design is meant to be sustainable across business cycles, not optimized for a single tax year.
Authoritative sources
Frequently Asked Questions
- What is Designer DB Plus?
- It is a coordinated three-layer strategy that may combine a Cash Balance Plan, a 401(k) and profit sharing plan, and a 401(h) medical account, evaluated together for a business owner rather than as separate products.
- Do I need all three layers?
- No. The design is modular. Some owners use only the Cash Balance and 401(k) layers; others add the 401(h) component when retirement medical planning is a goal.
- Who is the strategy best suited for?
- Owners with strong, stable income, favorable employee demographics, and a desire to contribute well beyond standard plan limits — typically those age 40 and older.
Use the Business Owner Tax Savings Analysis™ to estimate whether an advanced plan design may be worth reviewing for your income, age, and employee base.
Get My Tax Opportunity ScoreEducational only. Retirement Actuarial Services works alongside your CPA, tax advisor, and legal counsel. Plan feasibility, contribution limits, deductions, and 401(h) reimbursements depend on compensation, employee census, plan documents, actuarial assumptions, IRS limits, and applicable law. Examples are hypothetical and do not guarantee results.
