High Contribution Opportunities with Cash Balance Plans
Cash balance plans credit pay credits and interest credits to notional accounts; they remain defined benefit plans subject to funding rules.
How Cash Balance Works
Cash balance plans credit pay credits and interest credits to notional accounts; they remain defined benefit plans subject to funding rules.
Who They Suit
Profitable firms with stable cash flow
Owners seeking six‑figure deductible contributions
Practices with older owners and younger staff demographics
Implementation Checklist
Coordinate with actuary, adopt funding policy, and align with 401(k) for combined plan testing and benefits.
Plan Sponsor Action Checklist
Checklist
Request contribution ranges from your actuary before year‑end.
Checklist
Define an investment and funding policy statement.
Checklist
Coordinate combined plan testing with your TPA/recordkeeper.
Talk to our team
References
- DOL Cash Balance fact sheet; IRS chapter on cash balance plans.