A retirement plan that works as hard as your practice.
Setting up a 401(k) defined contribution plan for your business helps you attract top talent, save on taxes, and build your own retirement savings.
Benefits of an employer sponsored retirement plan
Tax-advantaged wealth accumulation for owners and partners.
Cash Balance (CB) plans provide a tax-advantaged wealth accumulation strategy for owners and partners of professional service firms. The plan is structured specifically to meet the increased contribution and equity objectives of owners and partners.
Such plans typically supplement a firm's existing defined contribution (DC) program (401(k)/Profit-Sharing) and provide all of the following advantages:
Two to four times more than your existing DC plan.
Total deductible contributions under a Cash Balance Plan can be two to four times more than contributions to the firm's existing qualified DC plan. Cash Balance Plan contributions are in addition to the amounts contributed to the DC plan, and typically vary based on a participant's age, compensation level, and/or employment group.
| Age | 401(k) Elective Deferral | Profit Sharing | Max. CBP Contribution | Combined Plan Total |
|---|---|---|---|---|
| 35 | $24,500 | $47,500 | $97,000 | $169,000 |
| 40 | $24,500 | $47,500 | $124,000 | $196,000 |
| 45 | $24,500 | $47,500 | $159,000 | $231,000 |
| 50 | $32,500 | $47,500 | $204,000 | $284,000 |
| 55 | $32,500 | $47,500 | $262,000 | $342,000 |
| 60 | $35,750 | $47,500 | $336,000 | $419,250 |
| 65 | $32,500 | $47,500 | $349,000 | $429,000 |
Illustrative only. Actual contribution limits depend on plan design, participant demographics, and IRS limits in effect for the plan year.
