Plan Design Services

Is your plan working toward your objectives? What are your objectives?

  • Employee Retirement Readiness
  • Passing Non-Discrimination Testing
  • Increasing participation rates and deferrals
  • Review and Apply modern Safe Harbor provisions
  • Integrating profit sharing plans
  • Retaining/rewarding highly compensated employees
  • Assisting business owners in saving adequately
  • Explore hybrid retirement plans (e.g. Cash Balance Plans) and/or complimentary non-qualified retirement plans (409A, 457B, 457F plans) for appropriateness with organizational objectives

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Cash Balance Plans

What is a cash balance plan?

There are two general types of pension plans — defined benefit plans and defined contribution plans. In general, defined benefit plans provide a specific benefit at retirement for each eligible employee, while defined contribution plans specify the amount of contributions to be made by the employer toward an employee's retirement account. In a defined contribution plan, the actual amount of retirement benefits provided to an employee depends on the amount of the contributions as well as the gains or losses of the account.

A cash balance plan is a defined benefit plan that defines the benefit in terms that are more characteristic of a defined contribution plan. In other words, a cash balance plan defines the promised benefit in terms of a stated account balance.