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.
Reduce My Taxes and Accelerate My Savings
retirement plan contribution limits for 2019
Age
401(k) with Profit Sharing
Cash Balance
Total
Tax Savings*
Age
70
401(k) with Profit Sharing
$62,000
Cash Balance
$336,000
Total
$398,000
Tax Savings*
$147,260
Age
65
401(k) with Profit Sharing
$62,000
Cash Balance
$271,000
Total
$333,000
Tax Savings*
$123,210
Age
60
401(k) with Profit Sharing
$62,000
Cash Balance
$261,000
Total
$323,000
Tax Savings*
$119,510
Age
55
401(k) with Profit Sharing
$62,000
Cash Balance
$203,000
Total
$265,000
Tax Savings*
$98,050
Age
50
401(k) with Profit Sharing
$62,000
Cash Balance
$158,000
Total
$220,000
Tax Savings*
$81,400
Age
45
401(k) with Profit Sharing
$56,000
Cash Balance
$123,000
Total
$179,000
Tax Savings*
$66,230
Age
40
401(k) with Profit Sharing
$56,000
Cash Balance
$96,000
Total
$152,000
Tax Savings*
$56,240
Age
35
401(k) with Profit Sharing
$56,000
Cash Balance
$75,000
Total
$131,000
Tax Savings*
$48,470
A Cash Balance plan may be a good fit for you if:
- You are seeking to reduce your annual taxable income by $56,000+
- You want to significantly increase the rate of your retirement savings
- Your business produces a steady revenue
- Your annual income is $280,000+
- 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
HOW TO START A CASH BALANCE PLAN
Cash Balance Plans can be offered in addition to other company-sponsored retirement plans. If you're seeking to add a Cash Balance Plan before this year's December 31 deadline, you'll need to get started by October 15—and it's easier than you think. Here's how it works with Fisher Investments 401(k) Solutions:
- Contact us, and we'll send you a form (called a census template). The census template includes information like employee salaries, date of birth, date of hire, and ownership information. Send the form back to us after it's filled out, along with a copy of the Adoption Agreement for your existing 401(k) plan.
- An actuary will prepare an illustration that depicts what adding a Cash Balance Plan to your company 401(k) can do for your specific business, including the specific costs and benefits. Once you have this information, you can decide whether you'd like to move ahead.
- If you decide you'd like to start a Cash Balance Plan, we will work with you and an actuary to coordinate plan documents that integrate with your existing 401(k). Documents must be signed by December 31 in order to get the tax savings for this year. You won't have to put any money into the plan until you file your annual taxes next year.
Reduce My Taxes and Accelerate My Savings
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