An opportunity for your dental practice

Keep more of what you earn.
Put more of it toward retirement.

A defined benefit retirement plan may let you make substantially larger tax-deductible retirement contributions, alongside a 401(k).

What is a defined benefit plan?

An employer-funded retirement plan designed around a targeted retirement benefit. Contributions are calculated by an actuary and can be much higher than typical 401(k) limits.

Why consider one?

To shift more of today's high-taxed earnings into retirement assets, potentially lower current federal and Arizona taxes, and build retirement savings faster.

Same earnings. Different tax bill.

Illustration: age 45 | $350,000 net profit (Schedule C) | Arizona | married filing jointly | 2026

Solo 401(k)401(k) + Defined Benefit

Annual retirement funding$72,000$202,000

Federal + AZ income tax$35,589$16,686

Additional retirement funding+$130,000

Additional annual income tax saved~$19,000

The potential impact

~$19,000

in additional annual federal and Arizona income tax savings, in this illustration

Why it may be worth a conversation

If your income is high and fairly steady, as a practice owner, a partner in a group, or an independent contractor, a defined benefit plan may let you set aside far more each year than a 401(k) alone. A brief feasibility review can estimate the contribution for you and anyone else the plan would cover, the annual funding it requires, and whether the design fits how you're paid.

Illustrative, not a proposal or guarantee. Figures come from the docResource Retirement & Tax Savings Illustrator using 2026 tax law and plan limits: the comparison is to a fully funded Solo 401(k) scenario, not a verified current plan. The $130,000 defined benefit contribution is hypothetical and requires actuarial confirmation. Results depend on plan design, compensation, age, payroll structure, coverage rules, and tax circumstances. Contributions create future funding obligations and administrative costs. Annual retirement funding includes any after-tax (Roth) amounts, which don't reduce tax.

Retirement & Tax Savings Report · 2026 Tax Law

Retirement & Tax Savings Illustrator

How retirement contributions empty your top tax brackets, and where those dollars go instead.

Date: November 4, 2026
Strategy: No retirement plan selected

Scenario

Schedule C net profit $350,000·Married filing jointly·Arizona·Age 45

Retirement & Tax Savings Illustrator

See how retirement contributions empty your top tax brackets, and where those dollars go instead.

2026 TAX LAW

Income type

Schedule C net profit

Filing status

State

Age

Side by side

Compare two strategies

Same income, age, and state. Pick any two plans to see what the second one adds.

	Solo 401(k)	401(k) + Defined Benefit	Difference
Total retirement savings	$72,000	$202,000	+$130,000
Pretax (lowers your taxable income)	$72,000	$166,040	+$94,040
After-tax / Roth	$0	$35,960	+$35,960
Annual tax savings	$15,071	$33,973	+$18,902
Federal income tax	$29,847	$13,296	−$16,551
State income tax	$5,742	$3,391	−$2,351
Payroll tax	$32,911	$32,911	—
QBI deduction	$45,935	$27,127	−$18,808
Effective income tax rate	10.2%	4.8%	−5.4 pts
Top federal bracket	22%	22%	—

401(k) + Defined Benefit adds $130,000 more for retirement than Solo 401(k) and cuts $18,902 more in tax this year. Each extra pretax dollar saves about 20¢ in tax. Defined benefit amount: $130,000 (illustrative; set by the plan's actuary).

Understanding the illustration

How the bars are built, and the rules behind the numbers.

Each tax column stacks your income from the bottom up. Your deductions fill first and are taxed at 0%. The rest fills the federal brackets in order: 10%, 12%, 22%, 24%, then the upper brackets in amber. The outlined block on top of the first column is the next bracket your income would reach. The small figures beside each column are your running income total at each boundary, so you can see the income level where each bracket starts and ends.

Turn on State taxes to fold your state into each block: the rate inside becomes federal plus state combined, and the state's share is listed on the right of each column. The state share is the state tax on those same dollars divided by the block, so a block that spans two state brackets shows the blend. Hover a block for the dollar amounts. Deduction blocks often carry a state rate because most states don't allow the federal standard deduction or the QBI deduction.

Turn on QBI threshold (Schedule C and S-Corp) to see where the QBI deduction starts phasing out (solid green) and where it's gone (dashed). The thresholds apply to taxable income before QBI, so the lines sit one standard deduction higher on the column than the published threshold.

Pretax contributions come off the top of your income, so they empty your highest bracket first. That's why a contribution saves tax at your top rate, not your average rate. The green outline on the second column shows the income that moved to retirement.

Not always dollar-for-dollar: Savings can be larger than your top rate suggests when a contribution also brings back part of the QBI deduction. They can be smaller when a Roth catch-up or employer money doesn't reduce your own taxable income.

For illustration only, using 2026 federal and state income tax rules, the standard deduction, and IRS plan limits. It doesn't include itemized deductions, credits, other income, or local taxes, and the employee costs of covering staff are not shown. Defined benefit amounts are illustrative and must be set by the plan's actuary. This is not tax, legal, or investment advice.