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?
Accounting & Financial Services
Companies with 1-500 partners