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Cash Balance


Why a Cash Balance plan vs. traditional plan

  • Better understood by employees
  • More predictable costs
  • Better able to target key staff
  • Ideal for professional groups

Is there a maximum I can contribute each year?

The IRS limits total tax deductible employer contributions for the combined plans (Defined Benefit Pension Plan & 401(k)/PS) to the greater of 25% compensation or the minimum required for the Defined Benefit Pension Plan. As the 1st 6.0% of DC contributions do not count toward the 25% limit, the effectively limit is 31% for non-PBGC covered plans. For PBGC covered plans, the 25% limit does not apply.

Does it matter how old I am?

Yes, the tax deductible contributions vary by age. To view the estimated annual contribution limits download our white paper below.

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