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Cash Balance 401k Plans

advantages of 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 similarities to a traditional pension plan. Like a traditional pension plan, the 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.

uncover and reduce 401k fees

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in both the Cash Balance and the 401(k) plans are rolled into Traditional IRAs to continue to grow tax-deferred until withdrawn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.