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CASH BALANCE PLANS ALLOW CONTRIBUTIONS of UP TO $433,500 PRE-TAX

Who is an ideal candidate?

Any highly compensated individual who desires to contribute more than $61,000 ($67,500 with catch-up) to their 401(k) accounts. Contribution limits are based on the age of the business owner.


Dentists, lawyers, medical professionals, accountants, or closely held family businesses are excellent candidates. Cash Balance Plans work well for both large and small businesses.

Young Business People Discussing Over Laptop — Fishers, IN — Norwood Economics

WHAT IS A CASH BALANCE PLAN?

A Cash Balance Plan is a type of IRS-qualified retirement plan. Cash Balance Plans are known as “hybrid” plans. They're called "hybrid" plans because even though they're defined benefit plans, they allow participants to roll their money into an IRA when they leave or retire. Assets are creditor protected and portable.


Many professionals and entrepreneurs neglect their personal retirement savings while they’re building their practice or company. They often need to catch-up on years of missed savings opportunities. Adding a Cash Balance Plan allows them to rapidly accelerate savings with pre-tax contributions resulting in tens of thousands of dollars in tax savings annually.

recent blog posts

The Fed Cut the Funds Rate Last Week, but Why?

By Christopher Norwood • November 3, 2025
Executive Summary The S&P 500 rose 0.7% last week to finish at 6,840.20 The S&P is up 16.3% year-to-date A stock represents ownership in a business The S&P 500 is rising at an increasing rate, and that can't go on forever Profit margins have been stable over the long run The Federal Reserve cut the Fed funds rate by one quarter point last Wednesday, but why? Inflation appears nowhere near declining to the Fed’s 2% target The annualized headline CPI September number was the second-highest since January Inflation is hurting the lowest 50% of income earners in the U.S.

The Fed Will Cut Rates Wednesday

By Christopher Norwood • October 27, 2025
Executive Summary The S&P 500 rose 1.9% last week The Fed will cut the Fed funds rate by 0.25% this week. The funds rate is currently 4.00% to 4.25%. Financial conditions are already easy The stock market is setting new highs Gold typically does best when liquidity is abundant Gold is up 54% YTD Bond investors seem to be signaling a recession ahead Stock investors see blue skies instead The Stock Market

Credit Cracks and Falling Liquidity

By Christopher Norwood • October 20, 2025
Executive Summary The S&P 500 rose 1.7% last week to finish at 6664.01 The Nasdaq & the Dow Jones rose as well last week We had an inside day last Monday, then an inside week Earnings season is here The four credit events might snowball into something more serious Credit spreads have started to react, widening over the last two weeks Bond yields fell (yields down, price up) last week The dollar index is also falling The Federal Reserve has been draining excess reserves from the system since 2022 It appears as if the Fed has no choice but to end its Quantitative Tightening (QT) program The Stock Market The S&P 500 rose 1.7% last week to finish at 6664.01. The Nasdaq 100 was up 2.4% and the Dow was up around 1.5%.