Maximize Your Deductions with our Instant Solo Cash Balance and Instant Solo(k) combination! This is a great solution for employers with no employees!
Contact Nova Sales Team: https://nova401k.com/about/sales/
Want a bigger tax deduction? Are you able to commit to a large funding amount for at least 5 years? Combining a 401(k) plan with a Cash Balance plan can help you save more. Below are the estimated deductions:
| Age | Minimum Compensation |
Estimated Cash Balance Deduction | 401(k) Deferral | Maximum Employer 401(k) Plan Contribution | Total Deduction |
| 40 | $110,000 | $110,000 | $23,500 | $6,600 | $140,100 |
| 45 | $145,000 | $145,000 | $23,500 | $8,700 | $177,200 |
| 50 | $190,000 | $190,000 | $31,000 | $11,400 | $232,400 |
| 55 | $250,000 | $250,000 | $31,000 | $15,000 | $296,000 |
| 60 | $280,000 | $280,000 | $34,750 | $16,800 | $331,550 |
| 65 | $310,000 | $310,000 | $31,000 | $18,600 | $359,600 |
Next Steps
✔ Confirm Your Compensation: Ensure your compensation is sufficient. W-2 income is preferred. If using Schedule C or K-1, or not sure you have enough compensation, share a draft with your Nova Sales Representative for more guidance.
✔ Your Cash Balance deduction is your compensation – limited by your age. As an example, a 40 year old with $300,000 compensation would have a deduction limited to approximately $110,000. See above chart.
✔ Tailored Solutions: Need different deductions? Contact your Nova Sales Representative for a customized plan.
✔ Please note that pension plan commitments are not discretionary. Please confirm with your CPA that you can commit to these large funding amounts for at least 5 years.
✔ 2025 Retroactive adopters. The deadline is August 1, 2026. Call your Nova Sales Representative regarding later retroactive adoption.
*Actual deductions depend on factors such as compensation, IRS interest rates, date of birth, date of hire, and other unique circumstances. Contact your Nova Sales Representative for a funding illustration based on your precise data. We DO NOT recommend a cash balance plan for a brand new company. The above numbers are based on the 2025 tax year. The IRS provides small cost of living increases each year.