Small Business Owners · Professional Practices · Southern Illinois

You built the business.
Now let's build
your financial life.

Running a business in Southern Illinois takes everything you have. When you are focused on payroll, clients, and operations, your own financial future often gets pushed to the back. We help business owners bring both into balance.

See What We Do
The Challenge

You are building
two things at once.
Most owners only
plan for one.

As a business owner, you are simultaneously building a business and building a retirement. The difference is that a business can be sold, liquidated, or transferred. A retirement has to be funded, invested, and protected over decades.

Without an employer match, pension, or automatic retirement contributions, everything falls on you. Many business owners reach their 50s and realize they have poured everything into the business with very little set aside personally.

The good news: business owners have access to retirement plan structures that employees never see. With the right plan in place, you can dramatically reduce your tax burden today while building the retirement you have earned.

Why This Matters

Your business is not your retirement plan.

Many business owners plan to sell their business and live on the proceeds. That strategy depends on a willing buyer, a favorable market, and a valuation that may not materialize the way you expect.

A well-structured financial plan treats the business as one asset, not the only asset. We help you build both in proportion to each other so that neither depends entirely on the other.

"Build the business. Fund the retirement. Get both working together."

What We Do

Financial planning built
for business owners.

Retirement Plan Setup

Identifying and implementing the right retirement plan structure for your business. Solo 401(k), SEP IRA, SIMPLE IRA, or a cash balance combo plan for high-income practice owners. We help you choose the plan that maximizes your contributions and tax deductions.

Tax Efficiency Strategy

Proactive strategies to reduce your business and personal tax burden. Coordinating retirement plan contributions, entity structure, and income timing to keep more of what you earn each year.

Business Succession Planning

Preparing for the eventual transfer of your business through a sale, family succession, or partner buyout. Business valuation, buy-sell agreements, and tax-efficient exit strategies coordinated with your personal retirement plan.

Personal Financial Planning

Separating and coordinating your personal finances from your business finances. Cash flow, insurance, estate planning, and investment strategy built around the realities of business ownership.

Key Person Planning

Protecting your business against the financial impact of losing a key person, including the owner. Life insurance, disability coverage, and continuity planning that keeps the business operating and your family protected.

Investment Strategy

Evidence-based investment management for your personal and retirement accounts. Low-cost, diversified strategies without the conflicts of interest that come with commission-based advisors.

Advanced Retirement Strategy
Cash Balance Combo Plans

The most powerful retirement
tool most business owners
have never heard of.

A Solo 401(k) or SEP IRA allows most business owners to contribute up to $70,000 per year toward retirement. For many owners, that is simply not enough to make up for lost time or to meaningfully reduce a high tax bill.

A cash balance plan, paired with a 401(k) profit sharing plan in what is commonly called a combo plan, can increase annual tax-deductible contributions to $100,000 to over $300,000 per year depending on your age and income. Every dollar contributed is a tax deduction for your business.

Cash balance plans are a type of defined benefit plan. Each year, the employer credits a set contribution and interest amount to each participant's account. The older you are, the higher the allowable annual contribution because there are fewer years to reach the retirement balance target. This makes them especially powerful for business owners over 45 who want to accelerate savings and reduce taxable income aggressively.

At the top federal income tax rate of 37%, a $200,000 contribution to a cash balance combo plan could represent more than $74,000 in federal tax savings in a single year, before accounting for state taxes. Consult a qualified tax advisor regarding your specific situation.

Ideal Candidates
Dental Practices Medical Practices Law Firms Architecture Firms Engineering Firms Accounting Practices Consulting Firms Veterinary Practices

Best suited for professional practice owners with consistent revenue, 10 or fewer employees, and income above $250,000 annually who want to maximize both retirement savings and tax deductions.

Contribution limit data sourced from IRS Notice 2024-80 and cashbalancedesign.com. 2025 combined Solo 401(k) limit: $70,000 (under 50), $77,500 (age 50 or older), $81,250 (age 60 to 63 per SECURE 2.0). Cash balance contribution ranges vary by age, compensation, and actuarial assumptions. Cash balance plans require an enrolled actuary. This information is for educational purposes only. Consult a qualified tax advisor and plan actuary for guidance specific to your situation. See our disclosure page for additional information.

2025 Contribution Comparison

How much can you put away each year?

SEP IRA
$70,000Max (2025)
Solo 401(k), age 50+
$77,500With catch-up
Solo 401(k), age 60-63
$81,250SECURE 2.0 super catch-up
Cash Balance + 401(k) Combo
$100,000+Up to $336,000+ (age dependent)

All contributions to qualified retirement plans are generally tax-deductible as a business expense. Cash balance contributions are determined annually by an enrolled actuary and vary based on age, compensation, and plan design. Amounts shown are estimates based on IRS 2025 limits. This is not tax advice.

Who We Work With

Business owners across
Southern Illinois.

01

Sole Proprietors

Self-employed individuals and independent contractors building a retirement without an employer match. We help you set up the right plan and make the most of every dollar you can contribute.

02

Professional Practices

Dentists, physicians, attorneys, architects, engineers, and other practice owners who want to maximize retirement contributions and reduce taxable income through advanced plan strategies.

03

Family Businesses

Multi-generational businesses planning for ownership transition. Succession planning, buy-sell agreements, and estate coordination that protects what you have built and the people who depend on it.

04

Small Business Owners

Retailers, contractors, service businesses, and entrepreneurs throughout Carbondale, Marion, Herrin, Murphysboro, Du Quoin, and Carterville who need a financial partner who understands Southern Illinois.

Common Questions

Small business planning, answered.

What retirement plan is best for a small business owner in Southern Illinois?

The right retirement plan depends on your business structure, income level, number of employees, and retirement goals. Common options include a Solo 401(k), SEP IRA, SIMPLE IRA, and for high-income professional practices, a cash balance plan paired with a 401(k). A fee-only financial advisor can help you evaluate which plan maximizes your tax deductions and retirement savings based on your specific situation.

What is a cash balance plan and who should consider one?

A cash balance plan is a type of defined benefit plan that allows business owners to make significantly higher tax-deductible contributions than a Solo 401(k) or SEP IRA alone. When paired with a 401(k) profit sharing plan, annual contributions can range from $100,000 to over $300,000 depending on age and income. Cash balance plans are particularly well suited for high-income professional practices such as dental practices, medical practices, law firms, and architecture or engineering firms with consistent revenue.

What is the difference between a Solo 401(k) and a SEP IRA?

Both plans allow small business owners to save for retirement on a tax-advantaged basis with a 2025 combined limit of $70,000. The Solo 401(k) allows catch-up contributions of $7,500 for those age 50 and older, and $11,250 for those age 60 to 63 under SECURE 2.0. The SEP IRA has no catch-up provision but is simpler to administer and available to businesses of any size. The Solo 401(k) is limited to businesses with no common-law employees other than a spouse.

How much can a business owner deduct with a cash balance combo plan?

When a cash balance plan is paired with a 401(k) profit sharing plan, a business owner in their 50s or 60s may be able to make annual tax-deductible contributions of $100,000 to over $300,000 depending on age, compensation, and plan design. All employer contributions to qualified retirement plans are generally tax-deductible as a business expense. Consult a qualified tax advisor for guidance specific to your situation.

What is business succession planning and when should I start?

Business succession planning is the process of preparing for the eventual transfer of your business through a sale, family transfer, or other exit strategy. It involves business valuation, tax planning, buy-sell agreements, and coordination with your personal retirement and estate plan. Ideally, succession planning begins five to ten years before your target exit date to allow time to maximize business value and reduce tax impact.

Does 1618 Wealth work with small businesses in Marion, Carbondale, and other Southern Illinois communities?

Yes. 1618 Wealth is based in Carbondale, Illinois and serves small business owners throughout the Route 13 corridor including Carbondale, Marion, Herrin, Murphysboro, Du Quoin, and Carterville. Mark Chalem, CFP® provides fee-only fiduciary financial planning with no commissions and no conflicts of interest.

Take the Next Step

Your business deserves a
financial plan as strong
as the work you put in.

Schedule a free 30-minute consultation with Mark Chalem, CFP® to discuss your retirement plan options, tax strategy, and how to build your personal financial life alongside your business. No obligation. No pressure. Just a real conversation.

Send a Message
(618) 967-5958 mark@1618wealth.com
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