In any situation, the best thing you can do is the right thing; the next best thing you can do is the wrong thing; the worst thing you can do is nothing.

Theodore Roosevelt, American President

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Ten Second Tips: Cash Balance


Ten Second Tips

Want to defer more Pre-Tax? Think Cash Balance.

Cash Balance Plans afford employers the ability to defer more pre-tax income for owners, executives, and participants in a manner not afforded in a traditional 401(k) plan.


When a company has been historically profitable, anticipates future profits to trend upward, and wants to explore alternative qualified plan options for their tax-savings benefit, Cash Balance could be a solution.

What is a Cash Balance Plan? 

A cash balance plan is a defined benefit plan that looks much like a defined contribution plan. The plan maintains a hypothetical account for each participant using a lump-sum value based on the actuarial equivalence of the accrued benefit under the defined benefit plan.

Technical, right? We think so too. Which is precisely why it is important to leverage a Retirement Plan Consultant to review the current benefit structure and any proposed changes. In the right setting, Cash Balance Plans are powerful tools for employers.

If you're ready to make retirement plans a focus, reach out! Our teams work with advisors and plan sponsors every day, all year long. We want to show you how we can work together to bring Retirement Readiness to the participants of employer-sponsored plans.