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