Cash Balance Case Study

A Tale of Two Dentists

A Cash Balance Case Study

Joe and Tom, partners in a dental practice, came to us looking for help. Joe had owned the practice for several
years, while Tom was a new owner. Both were interested in accumulating wealth for retirement, but they
recognized that they were in different places in life.

Scenario 1

We started our discussion with their existing Safe Harbor 401(k) profit sharing plan. By defining each individual as their own “group” we could allocate the maximum to both Joe and Tom. Since Joe is over 50 years old, he is allowed a catch-up contribution of $5,500. The cost is 7.5% of compensation to the employees. This resulted in 81% of all employer money allocated to Joe and Tom