Submitted by Pat Cote on November 11, 2019
If you are a small business owner making $400K - $600K, there is a large potential tax savings that you have likely not heard about. It involves combining the new 20% QBI deduction with a cash balance/defined benefit plan.
Many people do not know that they can bring down their taxable income by up to ~$250K by setting up 401K plans combined with a defined benefit or cash balance plan. This is very important for folks who miss the 20% QBI deduction, because contributing to these retirement plans can mean getting an extra $64K deduction!