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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

By Christopher Norwood June 30, 2025
Executive Summary The S&P 500 rose 3.4% last week, climbing to 6,173.07 The Magnificent 7 are outperforming the S&P 493 by over 18% since April The Cboe Volatility Index (VIX) fell as low as 16.11 last week Investors seem unconcerned about tariffs and war Treasury interest rates are starting to fall The Fed has little reason to cut if unemployment isn't moving higher The stock market is at record highs Corporate bond spreads are tight, meaning credit is abundant The dollar has fallen by around 10% in 2025 Inflation is expected to move higher because of tariff The Stock Market The S&P 500 rose 3.4% last week. The Israeli-Iranian ceasefire was credited with the surge to the upside. The index had lost 0.7% over the prior two weeks.
By Christopher Norwood June 23, 2025
Executive Summary The S&P 500 gained 0.3% last week, climbing to 5,967.84 The index is having trouble staying above 6,000 Technical indicators are turning somewhat negative The Federal Reserve kept the overnight rate at 4.25% - 4.50% The updated “dot plot” shows a divided Fed Seven members indicate no rate cuts in 2025 Eight members forecast two rate cuts in 2025 The Fed is forecasting a slower economy in 2025 and 2026 The hard data is starting to point to a slowing economy Inflation is still well above the Fed’s 2% target
By Christopher Norwood June 16, 2025
Executive Summary The S&P 500 fell 0.4% last week to finish at 5,976.97 Friday's sell-off due to Israel's attack on Iran The Volatility Index (VIX) is rising due to the war in the Middle East Higher volatility is usually associated with a down move in the market There is no chance of a Fed Funds Rate cut at this week’s meeting according to the CME FedWatch Tool The unemployment rate has been rising slowly The dollar continues to weaken The U.S. needs to reduce its spending to avoid a currency crisis  The Stock Market