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
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.