Believe it or not, you can put up to $265,000 in a retirement plan

Defined benefit plans are similar to pension plans that were very common 50 years ago. Today it’s more common for a plan based on how much money you put in on the front end and are called defined contribution plans, while a defined benefit plan is based on how much in the way of benefits would be paid to each participant upon retirement.

Some important factors here would be the ages of you and each of your employees and the differences in current payroll amounts.

This plan is especially a great fit if the owner or the ownership group is substantially older than the rank and file employees. Many actuarial calculations need to be done to see if this makes sense for you, but you can put up to $265,000 into a defined benefit plan.