Broker Check

Cash Balance Plan

Client Centered

What is a Cash Balance Plan?

The IRS calls the Cash Balance plan a “Hybrid Plan” due to the nature of the plan being a cross of a 401k and Define Benefit plan.  A Cash Balance plan is qualified retirement plan that can be implemented along with a 401k/Profit Sharing plan that can provide huge tax savings for partners/business owners.  

Is a Cash Balance Plan right for you?

We have found that the following are typically good candidates:

  1. Partners or owners who desire to contribute more than $50,000 a year to their retirement accounts.

  2. Companies already contributing 3-4% to employees, or at least willing to do so.

  3. Companies that have demonstrated consistent profit patterns.

  4. Partners or owners over 40 years of age who desire to “catch up” or accelerate their pension savings.