Solo(cb) Plan: A Solution that Just Works

What is a Solo(cb)

Solo(cb) is a one-participant cash balance plan, a cash balance defined benefit plan created specifically for self-employed individuals.

Because Solo(cb) is a pension plan, it affords the opportunity to take advantage of retirement and tax limits which may not be accessible in another retirement plan. Depending on an individual's age and compensation, it may accommodate tax-deductible contributions of $100,000 and more.

What is a Cash Balance Plan?

A cash balance plan is type of a defined benefit plan; it is frequently called a hybrid plan because in many ways it resembles a 401(k) plan. In a Solo(cb) plan the 'account balance' (plan benefit) grows from two sources: a pay credit and annual interest credit.

Both pay credit and interest credit are specified (or 'defined') in the plan document and are subject to IRS guidance. Interest credit is guaranteed and independent of the plan’s investment performance.

When it's time to distribute the funds out of the plan, the cash balance plan 'account balance' may be moved to another tax-advantaged account to defer taxation until distributions are needed.


Who is the best candidate?

When does it make sense?

How does it compare to others?

Why a Solo(cb)?

What are typical occupations?

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