# The Secret Retirement Stack: Business Owners' Cash Balance Plan Boost

> Business owners can supercharge retirement savings with a cash balance plan before December 31.
- Title: The Secret Retirement Stack: Business Owners' Cash Balance…
- Summary: Business owners can supercharge retirement savings with a cash balance plan before December 31. Profitable business owners can shelter up to $290,000…
- Keywords: cash balance plan, 401(k), retirement planning, business owners, pre-tax shelter, tax strategy, estate planning, secure act, Secret, Retirement, Stack, Business
- Source: Kiplinger — https://kiplinger.com/retirement/retirement-planning/the-retirement-stack-most-business-owners-dont-know-they-have
- Published: 2026-11-02T13:00:00+00:00
- Read time: 1 min
- Topics: cash balance plan, 401(k), retirement planning, business owners, pre-tax shelter, tax strategy, estate planning, secure act
## Layer No. 1: The 401(k) you already know
The IRS increased the 401(k) employee contribution limit to $24,500 for 2026, with a combined employee-and-employer ceiling of $72,000.
## Layer No. 2: The cash balance plan most business owners have never modeled
A cash balance plan shelters up to $175,000 annually at age 50 and $290,000 at age 60 in pre-tax contributions.
## The IRS lifetime funding cap under a defined-benefit structure
The IRS lifetime funding cap under a defined-benefit structure can reach approximately $3.7 million.
## Why December 31 is not a suggestion
A cash balance plan cannot be established retroactively; contributions must begin before December 31 of the tax year.
## The roofing contractor example
A roofing contractor with over a decade of profitable business had never heard of a cash balance plan due to tax season timing.
## Cash balance plan figures by revenue
At $500,000 gross revenue, a business owner can shelter $172,000 to $222,000 annually in pre-tax retirement contributions.
## The estate planning trap
Failing to coordinate retirement vehicles creates a tax time-bomb for heirs under the SECURE Act.
## Three things to do before December 31
Ask eligibility, run a five-year tax model, and start the cash balance plan adoption process now.
## The December 31 deadline
The December 31 deadline does not move; waiting until November compresses the implementation window significantly.
## Key takeaway

Profitable business owners can shelter up to $290,000 annually in pre-tax retirement contributions using a cash balance plan alongside their 401(k) before December 31.