Cash Balance Plans

What are cash balance plans?

Cash balance plans are a type of defined benefit plan where a company makes contributions on behalf of all participants. They differ in that they offer much higher contribution limits than a 401(k) plan, especially for older participants.  

Cash balance plans can be a great fit for business owners looking for ways to reduce their tax burden and save additional funds for retirement. Here are some key benefits of a cash balance plan:

  • Cash balance plans allow you to save a lot and get big tax deductions.
  • Cash balance plan contribution limits increase with age.  
  • Plan participants earn a guaranteed benefit (rate of return).
  • Cash balance plans are portable.

If you would like to talk more about your retirement planning situation, please reach out to schedule an introductory meeting.

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