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Stop Leaking Wealth to Inefficient Tax Strategy

Building a fortified balance sheet for physicians and practice owners through sophisticated financial architecture.

Calculate your Tax Savings

DB/DC Combo Plan Calculator

See how much more you could shelter with a Cash Balance + 401(k) strategy
compared to a standard 401(k) alone.

Owner Information
Owner's Age
State
Owner's Annual W-2 Salary
$
Your W-2 salary as an owner-employee.
Business Profit
$
Net profit retained in the business, separate from your W-2 salary.
Company Name Optional
Employee Information
Eligible W-2 Employees Eligible employees only — age 21+ with 1,000+ hrs/yr service.
Total Eligible Employee Payroll
$
Combined W-2 wages for eligible employees. Enter 0 if solo owner.

Your Tax Alpha Breakdown

🔔 As a solo owner, 100% of the tax benefit flows directly to you — no employee cost offset required.

Additional Tax Savings with DB/DC Combo vs. 401(k) Only

Net benefit after all employee costs

Combined Tax Rate

Scenario A

Standard 401(k) Only

Employee Max Deferral
Catch-Up Contribution
Roth Catch-Up Requirement SECURE 2.0 · IRC §414(v)

Under SECURE 2.0 (effective 2026), individuals with FICA wages exceeding $150,000 in the prior year must make catch-up contributions on a Roth (after-tax) basis. The base $24,500 deferral is unaffected.

For informational purposes only. Consult a qualified tax professional for advice specific to your situation.

Total Contribution
Estimated Tax Savings
Scenario B

FBS DB/DC Combo Plan

401(k) Deferral
Owner's Profit Sharing (DC)
Owner's Profit Sharing DC COMPONENT · IRC §404(a)(7)

Combo Plans (Defined Benefit + 401k)

Employer profit sharing is typically limited to 6% of compensation per IRS Rule 404(a)(7) to maximize tax deductions across both plans. Owners can still reach the $72,000 annual additions limit by combining this 6% with employee deferrals and voluntary after-tax contributions.

Standalone Plans (SEP-IRA or Profit Sharing Only)

Without a Defined Benefit plan, one can contribute up to 25% of eligible compensation, directly up to the $72,000 cap.

For informational purposes only. Consult a qualified tax professional for advice specific to your situation.

Owner's Cash Balance (DB)
Owner's Cash Balance (DB) ESTIMATED CONTRIBUTION · IRC §415(b)

The Cash Balance contribution shown is an FBS illustrative estimate based on the owner's age. Actual allowable contributions vary based on plan design, compensation, investment returns, and actuarial assumptions — and must be certified annually by an enrolled actuary as required by ERISA.

FBS Illustrative Estimates by Age

Age 30 – 39$85,000
Age 40 – 45$115,000
Age 46 – 50$150,000
Age 51 – 55$200,000
Age 56 – 60$260,000
Age 61 – 65$300,000
Age 66+$340,000

These figures are for illustrative planning purposes only and do not constitute a guarantee of contribution amounts. Consult a qualified actuary and tax professional to determine the exact contributions applicable to your specific plan and situation.

Estimated Employee Cost
Total Tax Deductible Amount
Total Tax Deductible Amount HOW IT'S CALCULATED
401(k) Deferral
+ Profit Sharing (DC)
+ Cash Balance (DB)
+ Employee Cost
= Total

Employee cost is included as employer contributions to employee retirement accounts are a deductible business expense. QBI deduction is shown separately as it is not universally applicable. For informational purposes only. Consult a qualified tax professional for advice specific to your situation.

Federal Tax Savings (37% max)
State Tax Savings
Gross Tax Savings
Net Benefit to Owner

If Applicable

Additional QBI Deduction Opportunity

Pass-through business owners may qualify to deduct up to 20% of qualified business income under IRC §199A. This is separate from your retirement plan deductions and depends on your entity type, income level, and business activity. Consult your CPA to determine eligibility.

Potential Additional Tax Savings
QBI Deduction SECTION 199A · PASS-THROUGH BENEFIT

Eligible pass-through business owners — sole proprietors, S-Corps, partnerships, and LLCs — can deduct up to 20% of their qualified business income from taxable income, as extended under current law.

How It's Calculated

Illustrative only — actual QBI is determined per IRS Form 8995 / 8995-A rules.

Adjusted Business Profits = Business Profits − Business Expenses − Owner's Compensation
QBI Deduction = Adjusted Business Profits × 20%
  • Full deduction below $207,200 (single) / $414,400 (MFJ) — adjusted annually for inflation
  • Deduction phases out above these thresholds over ~$50,000 range ($100,000 MFJ)
  • Specified Service Trades or Businesses (law, medicine, consulting, finance) — deduction is eliminated entirely above the phase-out range, not just reduced
  • No cash outflow — you keep the money and still receive the deduction
  • Stacks on top of retirement plan deductions (SEP-IRA, Solo 401(k), Cash Balance)

Income thresholds are projected 2026 figures based on IRS inflation adjustment trends and should be confirmed once officially published. For informational purposes only. Consult a qualified tax professional for advice specific to your situation.

This figure is illustrative. Actual QBI savings depend on your taxable income, entity type, and eligibility. Confirm with your CPA.

Reserve Your Private Tax Strategy Call

* Net benefit is calculated after subtracting estimated employee cost.
* Federal rate of 37% is the maximum marginal rate and may not reflect your effective rate. Please contact a CPA for the taxable income percentage applicable to your situation.
Estimates are based on top marginal federal rate (37%) and your state's top marginal income tax rate for CY2026. State tax rates, contribution limits ($24,500 / $32,500 catch-up / $72,000 DC max), and QBI thresholds ($207,200 single / $414,400 MFJ) are IRS-defined figures for 2026 and may change in future years. QBI deduction based on IRC §199A. This tool is for illustrative purposes only and does not constitute financial, tax, or legal advice. Consult a qualified advisor before making plan decisions.

Our 3E Philosophy

  • Educate

    Foundational financial literacy customized for high-income earners to understand the 'why' behind the strategy.

  • Elevate

    Advanced strategies to optimize tax efficiency, utilizing institutional tools unavailable to retail investors.

  • Engage

    Active portfolio management and personalized advisory that evolves with your career trajectory.

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so retail-grade strategies don’t erode your wealth
as the tax code evolves.

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Frisco Business Solutions Group Inc DBA FBS Securities is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.