Cash Balance Plans
Tax Shelter Services
Tax Shelter Services. Under the right conditions a cash-balance plan combined with a 401(k) plan can give a
turbo boost to a small business owners retirement savings. A cash balance plan is like
traditional defined-benefit pension plans with a 401(k) twist. Participants receive a target
benefit at retirement but that target benefit is stated as an account balance rather than
as a monthly income stream. Cash-balance plans have generous contribution limits that
increase with age. People 60 and older can sock away well over $200,000 annually in
pretax contributions. SetAway works with business owners and investment advisors to
provide a detailed cost analysis that will determine if this plan design can work for you.
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Turbo Boost Your Retirement Savings
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Plan Characteristics:
- Who is a best fit: Business owners and other high income professionals
- Entities with strong cash flow
- The contributions are tax deductible
- Limit is on the benefit, not the contribution
- Potential to fund towards target in excess of $2.5 million for the principal
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