Qualified Plans Explained for Entrepreneurs!

January 12, 2026•3 min read

In this episode, R. Kenner French breaks down one of the most misunderstood—but powerful—financial tools available to entrepreneurs: qualified plans. He opens by addressing the big questions business owners are asking right now: What is a qualified plan? Can it really save me money? And can a solo entrepreneur use one without employees? The short answer: yes—and the benefits can be massive when structured correctly.

Kenner explains that qualified plans include familiar options like 401(k)s, IRAs, profit-sharing plans, and defined benefit or cash balance plans. While many entrepreneurs assume these tools are only for large companies with employees, Kenner shows how solo business owners can legally use them to defer—and in some cases eliminate—large amounts of taxes. In fact, certain defined benefit plans allow high-earning entrepreneurs to contribute $200,000 to $300,000 per year, creating a powerful catch-up strategy for those starting retirement planning later in life.

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A key takeaway from the discussion is the dramatic difference between qualified and non-qualified investing. Using a simple example, Kenner demonstrates how tax deferral alone can lead to 25% more wealth over time, even with conservative investment returns. By keeping assets inside a qualified plan, entrepreneurs avoid annual tax drag, allowing compounding to work faster and more efficiently—especially over long time horizons.

Another eye-opening insight is the flexibility of investments inside qualified plans. Contrary to popular belief, these plans are not limited to stocks and bonds. Kenner explains that real estate, tax liens, insurance strategies, and even crypto can be held inside properly structured qualified plans. For entrepreneurs who want control, trustee-directed plans allow business owners to choose and manage their own investments, while still enjoying tax protection and compliance.

Beyond tax savings and growth, Kenner highlights additional benefits like asset protection, convenience, and estate planning advantages. Qualified plans are often difficult to access in lawsuits, require minimal reporting while assets remain inside the plan, and can simplify complex financial lives into a single, tax-advantaged “umbrella.” His message is clear: in an uncertain economic environment, qualified plans are not just retirement tools—they are strategic weapons for entrepreneurs who want to protect wealth, lower taxes, and maintain their standard of living long-term.

Takeaways

• Qualified plans can significantly enhance retirement savings.

• Entrepreneurs can benefit from various types of qualified plans.

• Investment options in qualified plans include real estate and alternative assets.

• Tax advantages of qualified plans can lead to substantial savings.

• Control over qualified plan assets allows for personalized investment strategies.

• Loans can be taken from qualified plans, providing liquidity.

• Qualified plans can include insurance and cryptocurrency investments.

• Understanding the structure of qualified plans is crucial for maximizing benefits.

• Consulting with a financial advisor is essential for effective planning.

• Resources like the Entrepreneurs Manifesto can provide valuable insights.

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