Cash Balance Plan Administration
Third Party Administration for Cash Balance Plans:
- Formula to determine employers contribution to the business hypothetical account
- Interest rate to be credited to the business hypothetical account
- Eligibility requirements for employees
- Vesting schedules for employees
starting at $665 per year
through our preferred providers
What is a Cash Balance Plan?
A cash balance plan shares some similar to a traditional pension plan. Similar to traditional pension plans, a cash balance plan provides employees with the option of a lifetime income.
The difference between pensions and cash balance plans is a cash balance creates an individual account for each employee enrolled with a specified lump sum. Establishing a cash balance plan offers potential tax savings for employers.
Find out of a Cash Balance Plan is right for your business.
Advantages of Cash Balance and 401(k) Plans
- Business owners can contribute to their cash balance retirement account 3x or 4x times what they can to other types of retirement plans
- Contributions and fees are deductible business expenses generally saving the owner tens of thousands of dollars in annual taxes
- Cash Balance Plans contribution amounts can be higher for business partners
- Business Owners can set different “classes” and contribution levels for specific employee groups which provides for more flexibility in bonus employee benefits
- Retirement account contributions on behalf of employees are limited and established during plan design. Changes in company personnel will impact required contributions from the business owner.
- Retirement account investments grow tax deferred, building wealth faster
- When an individual retires or terminates the plan, assets in both the Cash Balance and the 401(k) plans are rolled into Traditional IRAs to continue to grow tax-deferred until withdrawn
- Clients can select any equities, mutual funds, bonds, annuities or other marketable securities to fund their plans
- Turnkey administration by Specialists who design plans tailored to meet each business owner’s objectives and handle all paperwork related to plan set-up and ongoing government compliance and reporting.