Pre‑Sale Playbook: Install or Optimize a Cash Balance Plan Before You Sell
If a transaction is on the horizon, a CB plan can accelerate pre‑tax savings, clean up diligence, and improve your negotiating position when timelines and funding policies are clearly documented.
Why before a transaction?
Accelerated pre‑tax savings in final high‑income years.
Cleaner diligence—buyers value predictable, well‑documented plans.
Better negotiations—clear funding ranges and freeze/terminate options.
Timeline (start 6–12 months pre‑LOI)
Feasibility & illustration.
Select design (pay credits, interest crediting, funding policy).
Coordinate the 401(k) (safe harbor, profit sharing, coverage/testing).
Implement & document (plan doc, resolution, notices, funding calendar).
Deal language (funding through close; keep/freeze/terminate).
Key design levers
Contribution ranges for strong vs. lean years.
Fixed or permitted market‑rate interest crediting.
Partner classes/age bands to align value pre‑exit.
Freeze or terminate?
Freeze stops new accruals; termination requires full funding and proper settlements. We deliver the roadmap and filings.
Plan Sponsor Action Checklist
Talk to our team