Cash Balance Proposal Examples (Educational)
Cash Balance + 401(k) plans work when design, documents, and testing align.
The examples below use fictional data to show how owner targets, staff cost,
and funding ranges can look in real-world practices.
Educational only — figures are hypothetical. Not tax or legal advice.
Sunrise Spine Orthopedic Group
2 owners · 13 staff
Total CB + 401(k)$672,656
Owners$598,88089.0%
Staff$73,77611.0%
Estimated tax savings (illustrative)
- 24% bracket: $161,437 → net after staff ≈ $87,661
- 32% bracket: $215,250 → net ≈ $141,474
- 35% bracket: $235,430 → net ≈ $161,654
- 37% bracket: $248,883 → net ≈ $175,107
BrightSmile Dental Associates, P.A.
3 owners · 18 staff
Total CB + 401(k)$681,538
Owners$575,42384.4%
Staff$106,11515.6%
Estimated tax savings (illustrative)
- 24% bracket: $163,569 → net ≈ $57,454
- 32% bracket: $218,092 → net ≈ $111,977
- 35% bracket: $238,538 → net ≈ $132,423
- 37% bracket: $252,169 → net ≈ $146,054
Precision Engineering Consultants, Inc.
2 owners · 10 staff
Total CB + 401(k)$504,757
Owners$430,46985.3%
Staff$74,28814.7%
Estimated tax savings (illustrative)
- 24% bracket: $121,142 → net ≈ $46,854
- 32% bracket: $161,522 → net ≈ $87,234
- 35% bracket: $176,665 → net ≈ $102,377
- 37% bracket: $186,760 → net ≈ $112,472
Flagship Proposal — Full Contribution & Tax Analysis
QACA + Profit Sharing + Cash Balance
Total CB + 401(k)$653,359
Owners$578,193≈88.5%
Employees$75,166≈11.5%
Tax summary (illustrative)
- Savings @ 24%: $156,806 | Net after staff & payroll tax ≈ $61,646
- Savings @ 32%: $209,075 | Net ≈ $113,915
- Savings @ 35%: $228,676 | Net ≈ $133,516
- Savings @ 37%: $241,743 | Net ≈ $146,583
Educational only—excerpts from our flagship sample proposal; not tax or legal advice.
What’s behind the numbers (how we customize)
- Per-class or per-employee pay credits (within compliance)
- Fixed vs. Treasury-linked interest crediting to manage funded-status risk
- Coordinated CB + 401(k) testing (safe harbor, gateway, cross-testing)
- Funding ranges (min/target/max) set for real cash flow
Next step:
Book a 15-minute Fit Check
or Request a feasibility
© Pension Services, Inc. Educational examples only — not tax, legal, or investment advice.