Cash Balance Plan

The powerful tax strategy for business owners.

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How a Cash Balance Plan Works

We know something you should know. There's a huge tax benefit that no one has told you about. You can save up to $100K or more¹ on your tax bill by adding a Cash Balance Plan to your 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 $407,500 per year. Contribution limits are based on the age of the owner.
Why it's important

A Cash Balance Plan takes advantage of a business expense that an owner can keep, deduct from profits, and let grow tax-deferred. Owners can fund a sizable portion of retirement savings using money they would have paid in taxes.
How Fisher can help

Cash Balance Plans can be complex and require a plan advisor with deep expertise. Fisher is one of America's top advisory firms with experience helping business owners set up this sophisticated strategy.

Must-See 2-Minute Video

Cash Balance 101 for Business Owners

Are you missing out on tax advantaged savings? Watch this short video from a Fisher small business specialist and learn how a Cash Balance Plan may help you.

Watch video

How Much Can You Save with a Cash Balance Plan?

Fund a sizable portion of your retirement savings using money that you would otherwise pay in taxes. Download this helpful infographic to view additional tools and resources.

Download the infographic

Cash Balance Case Study

See how a high-earning business owner can use an IRS-sanctioned strategy to reduce her tax bill by over $100K¹ a year.

Read the case study

Cash Balance Guide

Questions about Cash Balance plans? Everything you need to know to unlock huge savings.

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Are You Leaving Money on the Table?

Tell us a little about your situation for an estimate of just how much you could be saving on your tax bill (and putting into your own pocket).

Total Plan Contribution

Total Tax Reduction

Results

Cash Balance Contribution

401(k) Contribution

Annual Personal Tax Savings

Annual Corporate Tax Savings

401(k) Only

Annual Tax Savings

Cash Balance Contribution

401(k) Contribution

Annual Personal Tax Savings

Annual Corporate Tax Savings

401(k) with Profit Sharing

Annual Tax Savings

Cash Balance Contribution

401(k) Contribution

Annual Personal Tax Savings

Annual Corporate Tax Savings

401(k) with Profit Sharing and Cash Balance

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Annual Tax Savings

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Cash Balance Contribution

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401(k) Contribution

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Annual Personal Tax Savings

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Annual Corporate Tax Savings

2021 Contribution Limits

Save this handy table to determine just how much you could be contributing to your own retirement — with and without applying a Cash Balance to your retirement program.

Download the PDF

Schedule your free consultation!

One of our 401(k) business specialists would love to talk to you about your company's retirement plan needs.

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Rated one of America's top advisors

Top Rated Advisor - Financial Times (2014-2020)

Top US-based Fee-only Registered Investment Adviser - Investment News (2016-2019)

¹This is based on a 60 year old business owner putting away $19,500 in individual contribution, $6,500 as a catch-up contribution, $38,500 as Profit Sharing, and $266,000 as Cash Balance per 2021 contribution limits.

Show Video Transcript

Audio	Visual
Upbeat music	What is a Cash Balance Plan Fisher Investments®
The volume of the music is reduced. Male Voice: "Hi, I'm Mathew Cooksey, I'm the business development team lead here at Fisher Investments 401(k) Solutions. And I work with a lot of high-earning business owners who didn't realize we have a strategy to help them significantly reduce their tax liability upwards of one hundred thousand dollars each year. You could be one of them."	A man dressed in a suit speaks to the camera. A flyout in the lower left corner identifies him as Matthew Cooksey, Business Development Team Leader.
"So a Cash Balance plan is a type of retirement plan that often works side-by-side with 401(k) plan that allows high-earning business owners the ability to significantly increase their tax deferred savings often upwards of three hundred thousand dollars each year while also reducing their tax liability in some cases upwards of one hundred thousand dollars each year. And the greatest part about that is those contributions also grow tax deferred." "A Cash Balance Plan can be one of the most valuable tools that a lot of high earning small business owners overlook in their strategies to reduce their taxes. A lot of the clients I talk to have exhausted a lot of the traditional models or ways that they can reduce the amount they are paying in taxes. With this plan it allows them to not only save hundreds of thousands of dollars each year into their personal retirement those contributions allow them to reduce their tax liability as well. And that can be really beneficial for people that have kind of hit the wall of what is available to them." "Cash Balance plans can be complex. And its important to have an advisor who is an expert in them to help you navigate them Here at Fisher investments we have the expertise and the experience to help our clients and their CPAs optimize their plans to not only reduce their tax liability on an on on-going basis but make sure they're getting the most out of their retirement savings."	The flyout disappears. The camera remains focused on the speaker, occasionally zooming in or out.
The volume of the upbeat music increases.	A white background slides in from the right. Fisher Investment 401(k) Solutions logo fades on to the screen.
The music continues to play.	Fisher Investments 401(k) Solutions. © 2021 Fisher Investments. Investing in securities involves the risk of loss. Intended for use by employers and their consultants, considering or sponsoring retirement.
The music fades out.	The screen fades to black.

Cash Balance Plan