Cash Balance Plan

Enhancing Retirement Wealth for High-Income Business Owners: Leveraging the Benefits of Cash Balance Plans.

What is a Cash Balance Plan

Cash Balance Plans are a powerful retirement savings tool primarily designed for high-income business owners and professionals. These plans offer an accelerated path to building substantial retirement wealth while providing tax advantages and financial security.

With Cash Balance Plans, business owners can strategically boost their retirement savings and secure their financial future.

Contribution Limits:

  • Contributions are age-dependent and income-driven, allowing high earners to make substantial contributions.
  • In 2024, business owners can contribute up to $275,000, depending on their age and income.
  • These plans can be stacked on top of your 401(k) and Profit Sharing plans to increase contributions.

Eligibility:

  • Employer Contribution-Only: Cash Balance Plans are structured as employer contribution-only retirement plans. Employees cannot make contributions, making it distinct from employee-driven plans like 401(k)s.
  • With or without employees:  These plans can be implemented as a solo business owner, spousal ownership only, or with a team of employees.  

Let’s Start

With A Proposal

Advanced Plan Design

For High-Income Business Owners

Think outside the box with one of our advanced plan design option for high-income businesses.  Stack a Cash Balance Plan onto your new, or existing 401(k) and profit sharing plan to safe up $100k+ in taxes.

Who Should Consider a Cash Balance Plan.

High-Income Business Owners and Professionals.

Cash Balance Plans are a powerful retirement savings tool designed primarily for high-income business owners and professionals, including doctors, lawyers, and others in lucrative fields.

These individuals can leverage these plans to maximize their retirement savings while enjoying significant tax advantages, making Cash Balance Plans a strategic choice for building substantial retirement wealth.

Employers Close to Retirement Seeking Rapid Savings Accumulation.

Business owners approaching retirement who are looking to stockpile their retirement savings can greatly benefit from these types of plans. These plans allow them to make substantial contributions in a shorter time frame, providing a financial cushion for retirement.

Business Owners with Few Employees or Solo Entrepreneurs.

Business owners with limited or no employees, including solo entrepreneurs, can strategically utilize Cash Balance Plans to maximize contributions to their own retirement accounts.

These plans offer an efficient way to build substantial retirement savings while providing flexibility in contribution limits, making them an ideal choice for those seeking to prioritize their own financial future.

401k plan administrator, small business 401k plan, cash balance plan
401k plan administrator, small business 401k, cash balance plan

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Other Plans To Consider

Consider exploring alternative plan options that could also suit your needs, in addition to the Cash Balance Plan.

Often Paired 

Safe Harbor 401(k)

Select from pre-approved matching and vesting schedules to simplify compliance requirements.

Traditional 401(k)

Tailor your matching and vesting schedules to align with your budget and safeguard your cash flow.

Advanced Strategy 

Non-Qualified

Select a plan for targeted benefits to specific employees, offering added flexibility for you and your employees.

Speak With A 401(k) Expert