CASH BALANCE PLANS

Without a sizable nest egg
Many business owners choose to put their extra funds back into the business instead of building a retirement portfolio, but when retirement looms near, a cash balance plan can “supercharge” your savings by allowing for more contributions.

Looking to save on taxes
We often hear clients say, “I’m paying too much in income taxes. What can I do to stop the bleeding?” A Cash Balance Plan may be just the answer.

All contributions to a cash balance plan are tax-deductible, similar to a traditional 401(k). But because of higher contribution limits, you can defer a greater portion of your tax burden by placing it in a cash balance plan, further limiting your tax liability.

Wanting the security of a pension
The investments inside a cash balance plan are determined by the plan trustees. Additionally, participants are guaranteed a minimum benefit amount similar to a traditional pension.

Cash balance plans are not right for every client, but depending on the situation an owner or professional could make a tax-deductible contribution between $100,000 to $400,000 per year. To determine if a plan is right for you, contact us today.

Cash Balance Resources

Reducing the Pain of Recent Tax Hikes