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The Retirement Plan Stack
How high-income business owners save $100,000 to $300,000+ a year pre-tax by layering the right plans in the right order.
One framework. One team. Built around your tax goals.
Build Your Stack
A free, custom Retirement Plan Stack illustration
What is the Retirement Plan Stack?
The Retirement Plan Stack is the framework Life, Inc. Retirement Services uses to design retirement plans for business owners. Instead of picking one plan off the shelf, we layer plans on top of each other, each one adding contribution room the layer below can’t.
Most owners stop at a 401(k) and leave six figures of potential deductions on the table. The Stack shows you how far you can go, and what it costs to cover your employees at each level.
The four layers
| Layer | What it adds | 2026 range per owner |
|---|---|---|
| 1. 401(k) | Salary deferrals, pre-tax or Roth | $24,500, plus $8,000 catch-up at 50+ ($11,250 at 60 to 63) |
| 2. Profit sharing | Employer contributions, designed to favor owners | Up to $72,000 combined with the 401(k) |
| 3. Cash balance plan | Age-based employer contributions | Often $100,000 to $300,000+ |
| 4. Executive benefits | Non-qualified plans and insurance strategies | No IRS contribution limit; offered only to who you choose |
Learn more: 2026 limits by age | adding a defined benefit plan | executive benefits
Why the order matters
- Each layer is designed with the others. Profit sharing and cash balance plans are tested together, so designing them separately leaves money on the table.
- Staff costs are managed across the whole Stack, not plan by plan. That is how owners keep 90% or more of total contributions. See keeping employee costs low.
- Not everyone needs every layer. A younger owner might stop at Layer 2. An owner in their 50s with steady profits might use all four.
How We Build Your Plan
From first call to first contribution, we handle the design, the math, and the compliance.
1
Review Your Business
We look at your income, age, staff census, and current plan to see what’s possible.
Design Your Stack
We layer your 401(k), profit sharing, and cash balance plan around your tax goals.
See the Numbers First
You get a clear illustration of your deduction, your savings, and your staff cost before you commit.
We Run It for You
Plan documents, annual actuarial work, testing, and filings, handled every year.
Which layers do you need?
Your Stack depends on your age, how much you want to deduct, how steady your profits are, and who works for you. A typical starting point:
| Your situation | Layers that usually fit | Typical 2026 pre-tax savings per owner |
|---|---|---|
| Younger owner, or profits that vary year to year | Layers 1 and 2 | Up to $72,000, plus catch-up at 50+ |
| Owner 40+ with steady profits of $250,000 or more | Layers 1, 2, and 3 | About $166,000 to $250,000+ |
| Owner 55+ who wants the largest deduction | Layers 1, 2, and 3 with a larger cash balance design | About $340,000 to $415,000+ |
| Business with key people to reward or retain | Add Layer 4 | No IRS limit; offered only to who you choose |
Illustrative ranges for an owner earning at least $360,000. Actual amounts are set by the plan’s actuary and depend on age, pay, employees, and plan design. See 2026 savings by age.
Who the Stack is built for
- Physicians, dentists, attorneys, CPAs, and consultants
- Closely held businesses with 1 to 50 employees
- S corp owners and partners earning $250,000 or more
- Owners who want a bigger deduction than a 401(k) alone allows
Michael, a successful business owner with no employees, wanted to maximize his retirement savings while minimizing taxes.
Through a custom-designed retirement plan stack, he and his wife were able to contribute over $575,000 across multiple plans in a single year.
This strategy not only helped secure their financial future but also generated over $222,000 in immediate tax savings, significantly increasing their cash flow and long-term wealth-building potential!
James runs a construction company with high employee turnover and wanted a way to protect cash flow while maximizing retirement contributions.
Through a custom 401(k) and profit-sharing plan design, we used strategic eligibility and vesting schedules to limit costs from short-term employees while allowing ownership to maximize contributions.
This strategy protected company assets, controlled expenses, and helped James build significant retirement wealth.
Eileen, a small business owner, needed a low-cost retirement plan that would meet state mandate requirements while helping her recruit and retain high-quality employees.
Eileen used a customized 401(k) solution focused on minimizing expenses, giving Eileen a competitive edge in hiring without pulling resources away from reinvesting in her growing business.
By using tax credits, her design allowed her to stay compliant, attract top talent, and keep her financial priorities aligned.
*These are hypothetical clients with hypothetical situations and plan designs.
Why business owners work with Life, Inc.
- Everything under one roof. Plan design and administration, investment advisory, and insurance strategies, all from one team. No juggling three different firms.
- A credentialed, in-house team. Our plan specialists hold industry designations including QKA, QPA, and AIF, and handle your plan year round.
- Independent and unbiased. We work with the recordkeeper that fits your business and don’t take kickbacks from any of them.
- Custom, not cookie-cutter. Every plan is designed around the owners’ tax goals first, then built to pass IRS testing.
- Nationwide. We design and administer plans for businesses across the country.
Learn more: 2026 Savings by Age | Adding a Defined Benefit Plan | Employee Costs | Executive Benefits | About Us
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Our Most
Asked Questions
What is the Retirement Plan Stack?
It is Life, Inc. Retirement Services’ framework for layering a 401(k), profit sharing, a cash balance plan, and executive benefits so high-income owners can save far more pre-tax than a 401(k) alone allows.
How much can I save with a full Retirement Plan Stack?
Depending on age and income, owners often save $100,000 to $300,000+ a year pre-tax, and owners in their late 50s and 60s can sometimes exceed $400,000 combined.
Is the Retirement Plan Stack only for doctors?
No. It works for any closely held business with high-income owners, including medical and dental practices, law firms, CPA and consulting firms, and other businesses with 1 to 50 employees.
Do I need all four layers?
No. The right Stack depends on your age, income, cash flow, and employees. Many owners use two or three layers.
What does it cost to cover employees?
It depends on your staff’s ages, pay, and eligibility. With a custom design, our goal is for 90% or more of total contributions to go to the owners.
Can I add layers later?
Yes. Many owners start with a 401(k) and profit sharing, then add a cash balance plan once profits are steady. Plans can be added at the start of any plan year, and some can be adopted after year end.
Who manages all the plans?
We do. Life, Inc. designs and administers every layer, coordinates with your recordkeeper and actuary, and handles testing and government filings each year.
Some Of Our Trusted Partners:
Life, Inc. Retirement Services does not offer tax advice. Please always consult your tax professional about your eligibility for tax credits.
Life, Inc. Retirement Services is a Registered Investment Advisory Firm of the state of Ohio and licensed in Florida and Maryland. All emails and communication are meant to be informative and educational and should not be considered a sale of security until proper notification and disclosures are given.