Cash Balance Plans
Reduce your personal taxes. Increase your personal savings.
A Cash Balance Plan can be a good retirement savings vehicle for owners of successful businesses with steady revenue. While there are certain risks to consider, participants can expect benefits that other retirement strategies can’t offer—including significant tax reductions and accelerated savings. To learn more, download our Cash Balance guide.
retirement plan contribution limits for 2018
Age
401(k) with Profit Sharing
Cash Balance
Total
Tax Savings*
Age
70
401(k) with Profit Sharing
$61,000
Cash Balance
$329,000
Total
$390,000
Tax Savings*
$144,300
Age
65
401(k) with Profit Sharing
$61,000
Cash Balance
$266,000
Total
$327,000
Tax Savings*
$120,990
Age
60
401(k) with Profit Sharing
$61,000
Cash Balance
$254,000
Total
$315,000
Tax Savings*
$116,550
Age
55
401(k) with Profit Sharing
$61,000
Cash Balance
$194,000
Total
$255,000
Tax Savings*
$94,350
Age
50
401(k) with Profit Sharing
$55,000
Cash Balance
$148,000
Total
$209,000
Tax Savings*
$77,330
Age
45
401(k) with Profit Sharing
$55,000
Cash Balance
$113,000
Total
$168,000
Tax Savings*
$62,160
Age
40
401(k) with Profit Sharing
$55,000
Cash Balance
$87,000
Total
$142,000
Tax Savings*
$52,540
Age
35
401(k) with Profit Sharing
$55,000
Cash Balance
$66,000
Total
$121,000
Tax Savings*
$44,770
A Cash Balance plan may be a good fit for you if:
- You are seeking to reduce your annual taxable income by $55,000+
- You want to significantly increase the rate of your retirement savings
- Your business produces a steady revenue
- Your annual income is $275,000+
- Your business has fewer than 15 employees per owner
To learn more, download our preview guide to Cash Balance Plans, or you can talk to our Cash Balance Plan Specialists at 844-343-4015.
WHY ARE CASH BALANCE PLANS SO popular?
- Taxes: Many business owners and partners feel they are paying too much in income tax. A cash balance plan allows them to put more into retirement than a traditional 401(k) plan, reducing their taxable income.
- Combo: A Cash Balance Plan works best when combined with both a 401(k) and a Profit Sharing Plan—allowing for business owners and employees to save more toward retirement.
- Qualified: This is an IRS-qualified Defined Benefit retirement plan.
- Retirement Savings: Americans aren’t ready for retirement and the Boomer generation feels it the most as they approach retirement age. Cash Balance Plans allow older business owners a way to accelerate their personal retirement savings.
2017 Kravitz National Cash Balance Research Report