A powerful opportunity for successful business owners
For some owners and professionals, the contribution limits of a traditional 401(k) may not provide enough opportunity to build the retirement assets they need.
A cash balance plan may allow significantly larger tax-deductible contributions, particularly for owners approaching retirement with consistently strong income.
Who may benefit
- Profitable established businesses
- Professional practices
- Owners nearing retirement
- Companies with stable cash flow
“The best plan design balances meaningful owner benefits with a funding commitment the business can sustain.”
How the strategy works
Evaluate the Opportunity
We review ownership, employee demographics, cash flow and retirement goals to determine whether the strategy may fit.
Coordinate the Design
An actuary and administrator model potential contributions and integrate the plan with the existing 401(k).
Connect It to the Bigger Picture
Funding, investments, taxes, retirement income and business succession should all work together.
A cash balance plan can complement an existing 401(k) and profit-sharing plan by creating additional retirement-saving opportunities. Because contributions depend on plan design, employee demographics and actuarial calculations, careful analysis and ongoing coordination are essential.
- Feasibility analysis using company and employee data
- Coordination with an independent actuary and administrator
- Integration with the company’s 401(k) and profit-sharing plan
- Investment strategy aligned with the plan’s obligations
- Ongoing review with the employer, actuary, administrator and accountant
Planning beyond the plan
A cash balance strategy should be evaluated within the owner’s broader financial picture, including business cash flow, tax planning, retirement income, investment management, succession planning and estate goals.
Cash balance plan illustrations are estimates and depend on actuarial calculations, plan design, employee demographics and applicable law. WPG does not provide actuarial, legal, tax or plan-administration services.
Explore your potential
Contact WPG to request a preliminary cash balance plan assessment for your business.