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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

Slower Growth and Higher Inflation

By Christopher Norwood • April 21, 2025
Executive Summary The S&P 500 fell 1.5% last week to finish at 5,282.70 Counter-trend bounce started on April 7th Counter-trend rallies are short and sharp Thursday was an inside day Any trade war announcements will lead to more volatility Uncertainty is high, and consumer confidence is low The Federal Reserve is focusing on inflation The Philly Fed and Empire State indices continue to rise Small business owners are raising prices to offset input costs The Stock Market is still in a downtrend The Stock Market

Expect the unexpected

By Christopher Norwood • April 14, 2025
Executive Summary The S&P 500 had its best weekly gain since 2023 due to the suspension of most tariffs The Trade War and tariffs have dominated stock market action Daily announcements on the tariff front have led to high volatility The market is still in a downtrend Tariffs will negatively affect the U.S. economy Rising prices will reduce consumer demand U.S. earnings estimates are coming down; currently $267 and falling Pay attention to what bond investors are thinking The weakening dollar fell to its lowest level since 2022 The U.S. needs foreign capital

Uncertainty is high. Don't Panic.

By Christopher Norwood • April 7, 2025
Executive Summary The S&P 500 fell 9.1% and ended the week at 5,074.08 Bond yields are declining as investors flee stocks CME FedWatch tool now forecasts 3 to 4 Fed funds cuts in 2025 Inflation is higher than the Fed’s target and trending in the wrong direction The Volatility Index (VIX) spiked on Friday. Investors are showing fear The Stock Market is due a bear market bounce The longer-term downtrend likely won't end until Trump’s Trade War ends Market strategists are raising the odds of a recession and reducing price targets The Fed has a dilemma. It doesn't have the tools to deal with rising inflation and slowing economic growth simultaneously