Cash Balance Plans
Expertise you can rely on.
Cash balance plans are sophisticated, complex retirement plans that require specialized plan design and actuarial expertise. They can be an ideal solution for plan sponsors looking to reduce tax liabilities and accelerate retirement savings.
With significant IRS compliance and tax savings at stake, it’s important to consider an experienced partner with a deep bench of retirement expertise. As one of the country’s leading authorities in cash balance plan design, FuturePlan has the proven strength and scale in technology, innovation, and service quality to help advisors deliver more tax efficient solutions for better retirement outcomes.
Key features of cash balance plans
Cash balance plans combine the high contribution limits of traditional defined benefit plans with the flexibility of a 401(k) plan—allowing plan sponsors the opportunity provide real-value to employees:
- Reduced taxes – Corporate and personal tax savings can be significant.
- Accelerated savings – Accounts grow through employer contributions and a guaranteed interest credit.
- High contribution limits – Age-weighted contribution limits allow many high earners to double or triple their annual tax-deferred retirement savings.
- Creditor and asset protection – Cash balance plan assets are protected from creditors in the event of bankruptcy or lawsuits.
Download our case study to see how a small business contributed over $580,000 and saved $230,000 in taxes with a cash balance plan.
For advisors interested in growing their practices, FuturePlan offers a specialized training program to equip them with the essential strategies to prospect and sell these sought-after plans.
Want more information about this program?
Who’s right for a cash balance plan?
Recognizing who may benefit from a cash balance plan can help advisors evaluate who might be appropriate and help plan sponsors understand whether they qualify.
- High-earning companies and employees ($275,000+ annually)
- CPA and law firms, medical groups, and professional firms
- Closely held businesses and older business owners
Learn more about the characteristics of an ideal candidate for cash balance plans.
Cash balance benefits
While these plans are sophisticated and complex, having an experienced team of actuaries and specialized plan consultants is a significant benefit when partnering with FuturePlan. Other plan benefits include:
For plan sponsors
- Tax-deductible contributions
- A resource for attracting and retaining employees
For employees
- Tax-deferred contributions and earnings
- Guaranteed benefit amount
- Account balance portability
- Protection of assets from creditors
Discover the power of cash balance plans
Explore one of the fastest growing plan types in the retirement market with our cash balance research report.
Request a cash balance illustration
Do you have clients looking to accelerate retirement savings and reduce their tax burden? Fill out this quick form to receive a cash balance overview and one of our dedicated FuturePlan cash balance experts will reach out to you.