Maximize Your Deductions with Instant Solo Cash Balance and Instant Solo(k) combination
Contact Nova Sales Team: https://nova401k.com/about/sales/
Want a bigger tax deduction? Are you able to commit to large funding amount for at least 5 years? If your compensation is large enough, combining a 401(k) plan with a Cash Balance Pension Plan can help you save more. Here is what you could deduct:
| Age | Minimum Compensation | Estimated Cash Balance Deduction | 401(k) Deferral | Estimated Profit Sharing Deduction | Total Deduction |
| 40 | $110,000 | $110,00 | $23,500 | $6,600 | $140,100 |
| 45 | $145,000 | $145,000 | $23,500 | $8,700 | $177,200 |
| 50 | $190,000 | $190,000 | $23,500 | $11,400 | $224,900 |
| 55 | $250,000 | $250,000 | $31,000 | $15,000 | $296,000 |
| 60 | $280,000 | $280,000 | $31,000 | $16,800 | $327,800 |
| 65 | $310,00 | $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.
· Your Cash Balance deduction is your compensation · 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.
· 2024 Retroactive adopters. The deadline is August 1, 2025. Call your Nova Sales Representative regarding retroactive adoption.
*Actual deductions depend on factors such as compensation, IRS interest rates, date of birth, date of hire, and other unique circumstances. Consult with your CPA or Nova Sales Representive for a funding illustration based on your precise data. We DO NOT recommend a cash balance plan for a brand new company. In addition to the above deduction, you can defer and additional $23,500 to $31,000 into the 401(K) component of your Solo(k). The above numbers are based on the 2025 tax year. IRS provides small cost of living increases each year.