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Tax strategies create the savings. The Retirement Plan Stack puts those savings to work, so the money you would have sent to the IRS builds your wealth instead.
Create the savings. Fund the Stack. Grow what’s left.
A free tax strategy and retirement plan review
Most tax advice ends when your bill goes down. That’s a one-time win, and the savings usually get spent. Our First Principles framework treats tax savings as fuel and follows every dollar through three steps:
These strategies lower your tax bill and free up cash. On their own, they’re just deductions. In our framework, they’re the money that funds Step 2.
| Strategy | What it does | Best fit |
|---|---|---|
| Cost segregation | Splits a building into shorter-lived parts so you can depreciate much of it in the first year instead of over 39 years | Owners of business real estate |
| Bonus depreciation and Section 179 | Deducts equipment, vehicles, and improvements in the year you buy them | Businesses already planning major purchases |
| Pass-through entity tax (PTET) | Your S corp or partnership pays state income tax at the entity level, where it’s deductible, working around the federal SALT cap | S corps and partnerships in most states |
| S corp salary planning | Sets a W-2 salary that balances payroll tax against the retirement contributions it unlocks | S corp owners |
| Accountable plan | The business reimburses you tax-free for home office, phone, and mileage | Most owners |
| Family on payroll | Pays your spouse or children for real work, shifting income to lower brackets | Owners with family in the business |
| Charitable strategies | Donor-advised funds and similar tools bunch giving into high-income years | Owners who give regularly |
We coordinate these strategies with your CPA, who implements them on your return.
This is where the savings go to work. Every dollar that goes into the Stack is deductible, so the savings from Step 1 create another round of tax savings in Step 2.
| Layer | 2026 amount per owner | What it adds |
|---|---|---|
| 1. 401(k) | $24,500, plus $8,000 catch-up at 50+ | Your own pre-tax or Roth savings |
| 2. Profit sharing | Up to $72,000 combined with the 401(k) | Employer contributions designed to favor owners |
| 3. Cash balance plan | Often $100,000 to $300,000+ | The largest deduction, based on your age |
| 4. Executive benefits | No IRS limit | Rewards for key people, offered only to who you choose |
The Stack is designed so most contributions go to owners, not staff. See The Retirement Plan Stack and 2026 limits by age.
Once the Stack is full, the remaining savings go into accounts that are taxed differently, so you aren’t retiring with everything in one pre-tax bucket.
See executive benefits for how a business can help pay for these.
A 55-year-old S corp owner has $750,000 in profit, owns the building the business operates in, and takes a $360,000 salary.
| Step | What happens | Estimated federal tax savings |
|---|---|---|
| 1. Create the savings | A cost segregation study accelerates about $200,000 of building depreciation. PTET and an accountable plan add more. | About $85,000 |
| 2. Fund the Stack | The owner contributes about $336,100 pre-tax to a 401(k), profit sharing, and cash balance plan, plus an $8,000 Roth catch-up. | About $124,000 |
| 3. Grow what’s left | Part of the remaining savings funds a LIRP for tax-free income later. The rest is invested. | Tax-free growth |
| Total | About $209,000 less in federal tax this year, with the savings invested instead of spent |
Hypothetical example for illustration only, assuming a 37% federal bracket. Cost segregation accelerates deductions and can be recaptured when the property is sold. Actual results depend on your income, state, entity, and plan design. Review any strategy with your tax professional.
From first call to first contribution, we handle the design, the math, and the compliance.
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We look at your income, age, staff census, and current plan to see what’s possible.
We layer your 401(k), profit sharing, and cash balance plan around your tax goals.
You get a clear illustration of your deduction, your savings, and your staff cost before you commit.
Plan documents, annual actuarial work, testing, and filings, handled every year.
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.
Learn more: The Retirement Plan Stack | 2026 Savings by Age | S Corp Owners | Executive Benefits | About Us
Combine business-level strategies, like cost segregation, the pass-through entity tax, and S corp salary planning, with a retirement plan design that includes a 401(k), profit sharing, and a cash balance plan. Together they can cut taxes by six figures a year for many owners.
Put it to work instead of spending it. Our First Principles framework routes tax savings into the Retirement Plan Stack first, since those contributions are deductible too, then into tax-free accounts like Roth and life insurance retirement plans, then into other investments.
Yes. Cost segregation frees up cash by accelerating depreciation, and that cash can fund deductible retirement plan contributions. Your CPA and our team coordinate the timing so the deductions work together.
For most, the biggest single deduction is a cash balance plan on top of a 401(k) and profit sharing plan. Owners in their 50s can often deduct $250,000 or more a year.
Most life insurance doesn’t create a deduction. It fits in Step 3, as a tax-free bucket for retirement income and protection for your family. The exception is a split-funded defined benefit plan, where coverage is paid for with deductible plan contributions.
Many states let an S corp or partnership pay state income tax at the entity level, where it is deductible as a business expense. That gets around the federal cap on deducting state and local taxes on your personal return.
No. We design and run the retirement plans and insurance strategies, and we coordinate with your CPA, who implements tax strategies on your return and provides tax advice.
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.