There are a number of potential issues a plan sponsor may face if they use the investment rate of return as the plan’s interest crediting rate.
The number of new Cash Balance Plans continues to rise each year. Here are a few cash balance plan considerations as a popular retirement plan vehicle.
Cash balance plans allow high-income earners to save more towards retirement than a defined contribution plan. For example, in a defined contribution plan, the maximum annual additions are limited to $56,000 per year (as indexed). However, since the annual allocation...
The number of new cash balance plans adopted by employers increased 15% in 2016 (the most recent year that full 5500 data is available), compared to a 1% growth in 401(k) plans. Why have cash balance plans experienced so much growth? Several factors contributed to the...
Cash balance plans may allow high-income earners to save more towards retirement. So, who should consider a cash balance plan?
Accurate administration of a Cash Balance Plan is critical! The following questions can help you when choosing an actuary for your cash balance plan.
Several factors have contributed to the popularity of cash balance plans and findings show an increasing diversity in the companies adopting them.
The National Retirement Planning Coalition has designated April 11-15 as the 2016 National Retirement Planning week. In celebration, each day this week Watkins Ross will share some fast facts and planning tips on the various types of retirement plans we service....
The content below was originally posted 06/02/2015 and has since been updated. Click here to read the updated information. Cash balance plans allow high-income earners to save more towards retirement than a defined contribution plan. Unlike a defined contribution...
A cash balance plan is a defined benefit plan that specifies the benefit as a hypothetical account balance. Each year, the hypothetical account is credited with a principal credit and an interest credit, as defined in the plan document. These plans are required to...