Why a Cash Balance Pension Plan
Cash Balance Penion Plans are a type of Defined Benefit (DB) plan that provide many advantages for the business owner. There are many factors that contribute to the benefits of a Cash Balance Pension Plan, especially when looking at your plan from a dynamic or "strategic" approach. Some of these benefits are that this type of DB plan will:
1. Provide for higher yearly deductions,
2. Allow for a higher percentage of plan contributions to be given to favored individuals,
3. Make it easier for the small business owner to understand,
4. Minimize runaway costs - particularly regarding shorter service older participants,
5. Mean that fluctuations (especially lowering) of interest rates do not cause unexpected increases in costs,
Cash Balance Pension Plans are easy to manage and afford a large measure of control over all aspects of your pension plan.
Cash Balance Pension Plans easily integrate with an existing or new Defined Contribution (DC) plan such as, a Profit Sharing Plan, a Profit Sharing/401(k) Plan, and DC plans having a Safe Harbor feature.
Take a look at our Cash Balance Combo Plans shown on the home page.