Cash Balance Plan

A Cash Balance Plan is a Defined Benefit Plan that can be a good complement to a company 401(k) or other Defined Contribution Plan and allows business owners to increase the amount they can put aside for retirement by as much as four times the limit for a 401(k) Profit Sharing Plan alone.  With an ERISA plan already in place, the CB Plan contributions can be skewed in favor of the older and more highly compensated owners.