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Tax deferral today to address tomorrow’s risks.

SRA has made it possible for any successful business to take advantage of the same tools previously reserved for Fortune 500 Companies.

Do You Qualify?

What is an 831(b) Plan?

Much like the 401(k) tax code allows an employer to set aside tax-deferred dollars for retirement, the 831(b) tax code allows a business to set aside tax-deferred dollars for underinsured and/or uninsured risks. The similarities are clear and business owners should consider the risk mitigation advantages.

Do You Qualify?

Benefits of SRA 831(b) Plan



Traditional insurers cover a large portion of the risks business owners face. However, as many business owners learned during the COVID-19 pandemic, their policies often limited or excluded coverage. There are also many losses that insurers will not cover. An 831(b) Plan mitigates the risks business owners take each day, whether they realize it or not.



An 831(b) Plan allows a business owner to defer income to address tomorrow’s risks. Without an 831(b) Plan, business owners are self-insuring risks, such as a business interruption, with after-tax money from cash flow. With an 831(b) Plan, when catastrophe strikes, business owners can utilize these tax deferred reserves to weather the storm.

Who Can Benefit

There is no shortage of risks in any industry. SRA helps the privately held small to middle market businesses that are the lifeblood of America. All businesses can benefit including:

  • Entrepreneurs
  • Property Managers
  • Dental & Medical
  • Professionals
  • Manufacturers
  • Self-Storage
  • Professional Services
  • Construction
  • Service Industry
  • Retail
  • Technology

SRA 831(b) Plan 4-Part Test

Built on the foundations of Rev. Ruling 2009-26 and recent court rulings, SRA has created a stringent 4-Part Test to ensure 831(b) Plan compliance. Each part of the test is essential to successfully owning your 831(b) and the ability to elect under the 831(b) Tax Code.


Risk Transfer

There must be a contractual transfer of risk from the operating company to an insurer. The SRA 831(b) Plan utilizes a Direct Writer that underwrites the risk and issues policy contracts to the operating company in exchange for premium.


Risk Distribution

In order to reduce the possibility that a single claim exceeds the amount of premiums collected, the 831(b) Plan must utilize the law of large numbers to disperse risk among unrelated parties. Each 831(b) Plan ARC administered by SRA is allied with others in risk co-ops that share each other’s risk on a pro rata basis.


Fortuitous Risk

The risk being contractually transferred must be fortuitous in nature and not considered to be an ordinary business risk. SRA’s Direct Writer underwrites many different risks that are fortuitous in nature including business interruptions, dispute resolution, political risk, brand damage and many more.


Insurance Principles

The 831(b) Plan must act just as an ordinary for-profit insurance company would by following the principles of insurance. These principles include: contractual transfer of risk, utilization of the law of large numbers, a defined methodology to determine premium, a defined claims process to determine covered losses, and managing reserves to generate investment income.

SRA 831(b) Plan Testimonials

From the CPA...

As a business owner, I think you should seriously consider 831(b)s primary because of the risk mitigation tools, but as a CPA its hard for me to ignore the blaring tax benefits that are coming down the pike from this as well. We shouldn't run away from it simply because there are good tax benefits. I would implore you to take a moment and understand it.

From the Tax Attorney...

Every time the government says I have to do something that’s a tax on the business owner. An 831(b) is the only mechanism I have ever found - candidly - that will allow me to own 100% as the business owner, let me control it, provide a massive amount of intangible risk protection, and also get significant tax benefits, as well as the back end benefit of being able to pull that money out for all sorts of reasons.

From the Financial Advisor...

I agree with SRA that in the next decade, an 831(b) will be standard practice for business owners. The days of a financial advisor that just looks at stocks, bonds, and mutual funds and doesn’t address business liability, cash flow, and tax planning [are over]. You need to be on the bleeding edge of financial advising.

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