Cash Balance / Defined Benefit / Owner-only Plan / Plan Design / Self-employed / Solo(cb)

Forget Orange, Cash Balance is the New Black

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Ten Reasons to Consider a Cash Balance Plan before December 31

Cash Balance plan (CB) is a type of a defined benefit plan; its popularity soared over the last decade largely due to the fact that they made something inherently very complex look incredibly simple and understandable (click for a quick overview). Why should your clients take a look at a Cash Balance Plan before 12/31? Here’s a list of 10 reasons:

  1. Access higher contribution potential than a 401(k): $100,000+ depending on age and income.
    2. Catch up on missed savings opportunities.
    3. Protect earnings from increased federal income tax rates and supplemental Medicare tax.
    4. Accelerate retirement savings.
    5. Increase retirement program’s efficiency by combining CB with a 401(k) Plan.
    6. Help employees understand and appreciate the value of contributions made by the company and retain key personnel.
    7. Gain access to pre-retirement accumulations in the event of an unforeseen need.
    8. Create a multi-level retirement program and effortlessly accommodate varying savings objectives between business partners.
    9. Utilize as a buy-out tool to transition business ownership on a tax-advantaged basis.
    10. Shield savings from judgment creditors.*

Use this article to introduce a Cash Balance Plan to your clients, prospects, and centers of influence; call us at (888) 926-0600 or click here for proposal assistance and sales support.

View our Solo(cb) microsite – a cash balance solution for the self-employed.

There is still time to start a cash balance plan in 2015. Plan documents need to be signed by December 31. We make it easy with utilization of electronic signature which takes the guess-work and complexity out of equation. So whether your client is hitting the ski slopes, traveling to warm beaches somewhere far away, or just enjoying time with family away from the office this holiday season, they can easily secure a deduction by signing documents on their smart phone, tablet, or computer.

*Plans which cover exclusively owner employees are not protected under Title I of ERISA; protection is available under The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005