IN A RECENT SURVEY BY THE SLEETER GROUP, 72% OF SMALL BUSINESS OWNERS CHANGED THEIR CPA, BECAUSE THEY ONLY GAVE THEM “REACTIVE SERVICES” INSTEAD OF “PROACTIVE SERVICES”

Retirement Actuarial Services was founded to address that very problem. In the last five to ten years, there’s been a dramatic shift in what people want and need from their CPAs. As the AICPA put it, CPAs are now expected to be their clients’ “most trusted business advisors.” As CPA Horizons 2025 pointed out, a CPA is no longer defined by “traditional services such as tax preparation, audits, and financial statements.”

In this shifting landscape, firms that will thrive in the future will learn how to use this trend to their advantage rather than struggle against it.

Retirement Actuarial Services 

Retirement Actuarial Services (RAS) is a full-service third-party administrator and actuarial firm specializing in customized tax-deductible Cash Balance Defined benefit plans for small business owners. In addition, we provide total support to tax advisors and their clients.

There has never been a better time to learn this powerful strategy. As a result, many changes have occurred regarding taxation and retirement planning for small business owners.

Top reasons why one should learn about Designer DB Plus™

  1. Small Business owners are looking for and need straightforward IRS-approved ways to reduce taxes and save for retirement beyond 401k and SEP contribution limits.
  2. Reduce effective tax rate and, in many cases, qualify for QBI deduction
  3. The IRS is about to receive Billions of dollars to hire 80,000 plus new IRS agents. Using IRS-approved retirement plans coupled with The Tax Cuts and Jobs Act (TCJA) is a powerful way to reduce taxes and, in many cases, qualify for the additional (QBI) Qualified Business Income 20% tax deduction.
  4. Most tax advisors don’t have the time or resources to recommend or implement these plans for their clients.
  5. The 2020 Secure act significantly increased tax credits to offset the setup cost of the plan.
  6. Small business owners are having trouble selling their businesses for what they may be worth, leaving them short on the needed assets to retire comfortably. By implementing a Designer DB Plus™ plan, Taxes are reduced, and retirement savings is accelerated, making the need for a business sale for a certain amount to retire less stressful.
  7. Changes in the laws have made plans flexible year to year for small business owners with fluctuating cash flows compared to past Defined Benefit plan regulations.
  8. Have additional savings for Tax-free Distributions to pay for Health and Medical Expenses in Retirement when needed most

Significant Changes in the Laws have made Designer DB Plus™ and Defined Benefit plans a powerful tool for High Income and Self-Employed Business Owners

Secure Act of 2020 Congress realized that America has a retirement planning crisis. So, to incentivize small business owners to offer retirement plans, they raised the tax credit limit from $1500 to $16,500. This dollar-for-dollar tax credit makes most plans a zero-setup cost for the employer.

The Tax Cuts and Jobs Act (TCJA) changed the tax law that affects high-income small business owners and self-employed individuals.

The TCJA changes increased the value of high contribution retirement plans like Designer DB Plus™. Taking these large tax deductions of the top line, you may bring your small business and self-employed clients below the taxable income thresholds ($340,100 married taxpayer, $170,050 single taxpayer in 2022). In addition, they may qualify for the 20% QBI (Qualified Business Income) deduction and save them tens of thousands of dollars in tax liability.

CalSavers Retirement Savings Trust Act. It requires California businesses with five or more California-based employees (one of whom is at least 18 years old) to offer either an employer-sponsored retirement plan or the state-sponsored retirement plan to their workers.

California implemented a new mandatory law requiring all companies with more than five employees to offer a retirement plan to their workers by June 30, 2022. Companies that don’t will be required to enroll in CalSavers, the state-sponsored individual retirement account (IRA), or face fines.

Although California was the first state to pass legislation related to mandatory retirement plans, it’s not the only state to do so. Similar laws exist or are being implemented in several places, including in CO, CT, IL, MD, MA, ME, NJ, NY, and OR. In addition, many other states are actively exploring a state-sponsored retirement option.

Benefits for CPAs that work with us:

  • Receive ongoing education on topics that impact your clients’ well-being
  • Reduce the risks that come from referring clients to third parties
  • Increase organic growth by giving clients an experience worth telling their friends about
  • Reduce the risk of losing clients by becoming more proactive
  • Provide more value and increase client satisfaction
  • Revenue Sharing Program.   Click To learn more

Sole Prop Opens Designer DB Plus™

CASE

Chad, age 53, is married. He is a successful real estate agent with no employees. Chad has a net profit of $500,000 (after paying self-employment tax).

GOAL

Chad wants to retain more of his earnings, pay lower taxes, secure his retirement savings, and prepare for the high cost of health and medical care in retirement.

SOLUTION

Designer DB Plus™ Defined Benefit Combo Plan

DEDUCTION

As an owner of a pass-through entity, he may qualify for a tax deduction under (Section 199A) of up to 20% of his Qualified Business Income if his income is below the $340,100 threshold for married couples.

*Please consult your tax advisor; RAS does not provide tax advice.

Designer DB Plus™ Plan

Net Profit after Expenses: $500,000
Plan Contribution $262,000
Qualified Business Income: $238,000
Pass-through Deduction: $47,600
Taxable Income: $190,400

Results:   $262,000 Retirement Savings            

$139,304 Tax Savings*

* Tax savings compared to no Plan and (Section 199A) QBI deduction. Assumes estimated 37% tax rates. RAS does not provide tax advice. This example is based on specific assumptions and is used for illustrative purposes only.

Small Business Owner Opens Designer DB Plus™

CASE

Sunil is 43 years old, married, and the owner of a thriving Software Engineering firm. Sunil has five employees, and they file as an S Corporation. As a result, he nets approximately $ 865,000 after expenses.

GOAL

Sunil wants to pay lower taxes, ensure he has enough retirement savings to maintain his lifestyle, and be prepared for the high cost of medical and health care in retirement.

SOLUTION

Designer DB Plus™ Defined Benefit Combo Plan.

DEDUCTION

As an owner of a pass-through entity, it is crucial to reduce the Net Operating Income to qualify for the Qualified Business Income Deduction (Section 199A) for up to an additional 20% of his Qualified Business Income

*Please consult your tax advisor; RAS does not provide Tax advice.

Designer DB Plus™ Plan

Net Profit after Expenses: $865,000
Plan Contribution $535,040
Qualified Business Income: $329,960
QBI Pass-through Deduction: -$65,992
Taxable Income: $263,968

Results: Percentage to Owner 94% $502,937 Retirement Savings

$256,698 Tax Savings*

* Tax savings compared to no Plan and (Section 199A) QBI deduction. The case assumes an estimated 37% tax rate. RAS does not provide tax advice. This example is based on specific assumptions and is used for illustrative purposes only.

Endodontist Practice with 10 Employees opens Designer DB Plus™

CASE

Dr. Smiley is 49 years old, married, and the owner of a thriving Endodontist practice with ten employees. They file as a Professional Corporation. He nets approximately $1.5m after expenses.

GOAL

Reduce his personal taxes, accelerate his retirement savings to maintain his lifestyle, create tax-free post-retirement savings for health & medical care high costs in retirement.

SOLUTION

Designer DB Plus™ Defined Benefit Combo Plan

DEDUCTION

This Profession may not qualify for Qualified Business Income Deduction (Section 199A) additional 20% of his Qualified Business Income.

*Please consult your tax advisor; RAS does not provide Tax advice.

Designer DB Plus™ Plan

Net Profit after Expenses: $1,470,000
Plan Contribution $1,162,952
Qualified Business Income: $307,048
QBI Pass-through Deduction: 0
Taxable Income: $307,048

Results: Percentage to Owner 98% $1,139,693 Retirement Savings

$470,208 Tax Savings*

* Tax savings, compared to no Plan, assumes an estimated 37% tax rate. RAS does not provide tax advice. This example is based on specific assumptions and is used for illustrative purposes only.

Construction Company with 30 Employees opens Designer DB Plus ™

CASE

Bill is 61 years old, married, and owns a construction company with thirty employees. They file as an S Corp. He nets approximately $797,000 after expenses.

GOAL

Bill wants to save on taxes, provide employee benefits while controlling costs, and ensure he has enough retirement savings to maintain his lifestyle while simultaneously creating tax-free money for the high cost of Health and Medical expenses in retirement.

SOLUTION

Designer DB Plus™ Defined Benefit Combo plan

DEDUCTION

This Profession may not qualify for Qualified Business Income Deduction (Section 199A) additional 20% of his Qualified Business Income.

*Please consult your tax advisor; RAS does not provide Tax advice.

Designer DB Plus™ Plan

Net Profit after Expenses: $797,471
Plan Contribution $561,627
Qualified Business Income: $235,844
QBI Pass-through Deduction: -$47,169
Taxable Income: $188,675

Results: Percentage to Owner 94% $526,137 Retirement Savings

$249,782 Tax Savings*

* Tax savings, compared to no Plan, assumes an estimated 37% tax rate. RAS does not provide tax advice. This example is based on specific assumptions and is used for illustrative purposes only.