Introduction to Cash Balance Plan
Cash Balance Plans are a type of tax – qualified Defined Benefit Pension Plan.
They have increased in popularity in recent years for a number of reasons:
– Contributions are tax deductible and investment return is tax deferred.
Higher Contribution Limits
– Cash Balance Plans permit larger annual tax deductible contributions and benefits than is possible with a 401(k) Profit Sharing Plan.
– Cash Balance Plans can easily be designed to provide age neutral benefits to all employees or targeted allocations to specific individuals.
Easy to Unde
– Cash Balance Plans are easier for plan sponsors and participants
to understand than traditional Defined Benefit Pension Plans.
Work with Existing or New 401(k) Plan
– Cash Balance Plans do not require substantial changes to existing 401(k) Profit Sharing Plans and work well in tandem with 401(k)
Profit Sharing Plans.
Sample Maximum Annual Contribution Limits
401(k) and Cash Balance Plan Maximum
Intro to Cash Balance Plans
Cash Balance Plan Features
When does a Cash Balance Plans Make Sense?
Who is the Ideal Cash Balance Client?
Process for Setting up a Cash Balance Plan
Schedule a time to talk with an Actuary:
Schedule An Online Meeting or Call