How a Cash Balance Plan Works
There's a huge tax benefit that likely no one has told you about. By maximizing your savings and tapping into additional plan features that multiply your tax benefits, you can save up to $100K or more1 on your tax bill. See why many successful business owners have added a cash balance plan to their company's 401(k) program.
What is a Cash Balance Plan
A cash balance plan is a type of retirement plan that allows business owners to contribute up to $485,500 per year. Itโs sometimes called a cash balance pension plan because it's a defined benefit plan, meaning contributors are guaranteed a specified amount in retirement.
Why it's Important
A cash balance plan allows owners to keep more of their profits and grow them tax-deferred. And because it’s a business expense, a cash balance plan can significantly reduce a company’s business taxes. In fact, owners can fund a sizable portion of retirement savings using money they would have paid in taxes.
How Fisher Can Help
Cash balance retirement plans can be complex and require a plan advisor with deep expertise. Fisher is one of America's top advisory firms with experience helping many business owners set up and manage this sophisticated strategy.
Must-See 2-Minute Video
Cash Balance 101 for Business Owners
Are you missing out on tax advantaged savings? Many business owners donโt yet know about the massive tax benefits a cash balance retirement plan can offer. Watch this short video from a Fisher small business specialist to learn how a cash balance program may help you.
Cash Balance Case Study
Interested in seeing how a cash balance plan might work in real life? Check out how a high-earning doctor, who’s both a business owner and employer, can use this IRS-sanctioned strategy to reduce her tax bill by more than $100K2 a year.
- Compare an ordinary tax-deferred plan with a 401(k) + cash balance plan.
- Learn more about the rules governing cash balance plans.
- See how savings increases lead to tax decreases.
Cash Balance Guide
Looking to dig into the details of cash balance plans? What you need to know to unlock huge savings is right here, from the benefits of this type of plan to the challenges of building and maintaining a cash balance plan over time.
Download our guide to get answers to these questions and more:
- What is a cash balance plan?
- What are the benefits of a cash balance plan?
- How does a cash balance plan work?
- Who is eligible for a cash balance plan?
Results
2024 Contribution Limits
Contribution limits typically go up each year, allowing you to save even more for retirement. Download this handy table to determine just how much you could be contributing to your own retirementโwith and without applying a cash balance plan to your retirement program.
CASH balance plans
Additional Resources
10 Essential Cash Balance Questions
If you run a successful business with steady revenue, you can save more for retirement while cutting your personal and business income taxes. Read this article to learn how.
Tax Savings Strategies
Thereโs a huge tax benefit for businesses that no one may have told you about. Some business owners can save up to $100K or more in taxes annually, by using three IRS sanctioned tax strategies.
Tax Benefits for Business Owners
Tax strategies are important for any employer, but especially for the owners of small and mid-sized businesses looking to make the most of every dollar.
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One of our 401(k) business specialists would love to talk to you about your companyโs retirement plan needs.
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