The SECURE Act changed the deadline for establishing a profit sharing plan or cash balance plan in order for employer contributions to be made for the 2021 tax year. The new rules extended the 12/31/21 deadline to the tax filing deadline for your practice, including extensions. Tax returns for S-Corps and partnerships are due 3/15 while those on extension have a 9/15 deadline. Sole Proprietors and Single Member LLCs that haven’t elected to be treated as an S-Corp are due 4/15 with a 10/15 deadline if an automatic extension request is filed with the IRS.

If you have not set up a retirement plan yet, it is now possible for you to profit share yourself up to $58,000 in deductions for the 2021 tax year. If you have traditionally maxed out your profit sharing contribution, you could now add on a cash balance plan for 2021 to defer paying taxes on another $50,000 – $200,000 of income and also earning compounded tax deferred growth on the money invested.

Given the 4-6 week process of running projections and setting up a 401(k)/profit sharing plan/cash balance plan, a practice owner looking to take advantage of the new deadline might consider filing for a tax extension for their practice tax return. This later deadline applies to the Solo 401(k)s as well, providing self-employed practice owners with no staff besides a spouse with the opportunity to possibly make larger retirement plan contributions than those available with a SEP IRA.

For more information about establishing or upgrading the retirement plan for your practice, please reach out to Alex Oliver CFP at You can learn more about Alex and the RIA where he works at: