Is your company looking for a competitive edge in attracting and retaining top talent while maximizing tax advantages? Introducing the Cash Balance Plan — a modern retirement solution that combines the best features of traditional pension plans and 401(k)s.
Why Choose a Cash Balance Plan
- Attract and Retain Talent: Offer a robust retirement benefit that stands out in the job market. Employees value the security and growth potential of a Cash Balance Plan's guaranteed contributions and interest credits.
- Higher Contribution Limits: Compared to traditional 401(k)s and profit-sharing plans, Cash Balance Plans allow for substantially higher tax-deferred contributions—especially beneficial for owners and high-earning employees.
- Tax Efficiency: Maximize your tax deductions. Employer contributions are tax-deductible, reducing your company's taxable income while investing in your team's future.
- Flexible Plan Design: Tailor the plan to meet your company's specific goals. Customize contribution levels, benefit formulas, and vesting schedules to align with your business strategy.
- Employee-Friendly Features: Participants enjoy the simplicity of individual account statements, showing their hypothetical account balance growing annually—making retirement planning more tangible.
- Portability: Upon retirement or separation, employees can roll over their balances into an IRA or another qualified plan, providing flexibility and control over their retirement assets
How Does It Work?
Each participant in a Cash Balance Plan has a hypothetical account that grows annually in two ways:
- Pay Credit: A percentage of the employee's salary or a fixed dollar amount contributed by the employer.
- Interest Credit: A guaranteed rate of return, which can be fixed or variable, linked to an index like the 30-year Treasury rate.
Why Partner with Us?
- Expert Guidance: Our team of retirement plan specialists will help you navigate the complexities of plan design, implementation, and compliance.
- Turnkey Solutions: We offer end-to-end services, including actuarial valuations, administration, and employee education.
- Customized Strategies: We work closely with you to develop a plan that meets your financial objectives and supports your workforce.
Take the Next Step
Empower your business and your employees with a retirement plan that delivers real value. Contact us today to learn how a Cash Balance Plan can transform your company's retirement offerings.