Norwood Economics
Building A Better Retirment

Cash Balance Plans

Cash Balance = Tax Savings

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What is a Cash Balance Plan?

A Cash Balance Plan is a type of IRS-qualified retirement plan known as a “hybrid” plan. In a Cash Balance Plan, each participant has a virtual account that grows annually in two ways: first, an employer contribution and second, an interest credit, which is guaranteed rather than dependent on the plan’s investment performance.

How much can you save with a Cash Balance Plan?

Are you a good candidate?

Any highly compensated individual who desires to contribute more than $56,000 ($62,000 with catch-up) to their retirement accounts

Many professionals and entrepreneurs neglect their personal retirement savings while they’re building their practice or their company. They often have a need to catch-up on years of missed opportunity. 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.

Cash Balance Plan Features

Assets are creditor protected and portable

Who is ideal?

  • Doctors

  • Dentists

  • Law Firms

  • Accounting & Financial Services

  • Companies with 1-500 partners

Cash Balance Plans By Business Type

Kravitz 2018 National Cash Balance Research Report