Is It Time for a Cash Balance Plan?

For business owners and key employees, the traditional limits of a 401(k) Profit Sharing Plan, may not be enough! It may be time to look at a Cash Balance Defined Benefit Pension Plan.

Cash Balance Plans allow for much higher annual employer contributions than traditional retirement plans, especially for business owners in their peak earning years. These plans can accelerate wealth accumulation and retirement savings while offering significant tax deductions.

For CPAs and financial advisors, this is an opportunity to add value and deepen client relationships by adding the most sophisticated tool in the Qualified Retirement Plan landscape. Adding a Cash Balance Plan can help solve complex planning challenges and align with both personal and business financial goals.

The structure combines the tax efficiency of a defined benefit plan with what clients will feel like is a simplified formula, typically based on age and compensation. When designed correctly, it can become a powerful addition to a business owner's retirement strategy.

We’ve created a short video that gives a high-level overview. It’s a helpful resource to share with clients who are exploring next steps in their retirement planning.

If you’re advising clients who are consistently maxing out their 401(k), it may be time for us to connect.