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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

A Lower Federal Funds Rate Means Less Income For Consumers

By Christopher Norwood • September 15, 2025
Executive Summary The S&P 500 rose 1.6% last week to finish at 6,584.3 The stock market rises long-term due to earnings growth and interest rates A stock is ownership in a business Investors are willing to pay more for a dollar’s worth of earnings today than in the past Profit margins are already near record highs The Volatility Index (VIX) closed the week at 14.76 The market is setting new highs The CME FedWatch tool places the odds at 100% for a rate cut Wednesday The August jobs report and last week’s jobs revision are driving rate cut expectations Cutting the fed funds rate isn’t the answer to slower job growth Higher long-term rates will negate any benefit from a rate cut The Stock Market

Risks are Rising as the Economy Slows

By Christopher Norwood • September 8, 2025
Executive Summary The S&P 500 fell 0.3% last week to finish at 6,481.50 The CAPE ratio is currently at its second highest reading ever Valuation is a lousy timing mechanism, but an excellent predictor of future returns Interest rates declined last week The 2-Year Treasury yield fell to 3.51% by the close on Friday The 10-Year Treasury yield also fell, ending the week at 4.10%. The CME FedWatch tool has the odds at 73% of a Fed funds rate of 3.50% to 3.75% or lower by year's end The weak jobs report on Friday showed that only 22,000 new jobs were added in August Unemployment rose to 4.3% from 4.2%. The aggregate weekly payrolls index fell to 4.4% in August “We’re back in that world of uncertainty," states Art Hogan, chief market strategist at B. Riley Wealth  The Stock Market

The Jobs Report Friday Could Spark a Rally or Sell-off

By Christopher Norwood • September 2, 2025
Executive Summary The S&P 500 finished down 0.1% at 6,460.26 last week The S&P is up 9.8% on the year. Industrials and Communication Services are leading the way Personal income rose in line with expectations for July, climbing 0.4% up from 0.3% the prior month A weak payroll number on 5 September means a Fed rate cut on 17 September Unemployment is expected to rise, but it is still low relative to history Wage growth close to 4% will make it hard for inflation to fall to 2% The predictions market has the odds of a recession at 8% The ICE BofA US High Yield Index spread is near all-time lows A bear steepener is increasingly likely. A bear steepener is when the yield curve falls at the short end but rises at the long end