Cash balance plans can be great solutions for small firms trying to save on their income tax bill and boost retirement savings. However, if certain criteria are met, cash balance plans can also be effective for larger firms. In order for a cash balance plan to make sense, regardless the size of the firm, it is important to have
Many owners desire larger tax deductions and accelerated retirement savings. Implementing a cash balance plan may be the best solution for such owners. Recent legislation encourages more and more professionals and successful business owners to adopt this type of plan.
In a cash balance plan, a “theoretical” account balance (or “TAB”) is maintained on behalf of each participant. Thus, each participant in the cash balance plan has a TAB that resembles those in a 401(k) or profit sharing planREAD MORE HERE