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.
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Are you a member of a medical practice group, a partner in a multi-generational family-owned business, or the owner or shareholder of a single-member S-Corp with large S-Corp distributions? A cash balance plan may be the perfect fit for you. Cash balance plans allow high-income earners to benefit beyond the limitations of a profit sharing plan or typical 401(k) by providing a principal credit and interest credit each year within an individual “hypothetical” account. Each cash balance plan maintains a set of funding limits, requirements, and risks outlined in the plan documents; maximum allocation limits typically exceed limits in defined contribution plans. Learn more about cash balance plans, including details about annuity forms of payment, tax-deferred savings, and minimum funding requirements by browsing our cash balance plan articles on the Watkins Ross blog. Interested in discovering how a cash balance plan can enhance your retirement plan benefits? Connect with the Watkins Ross cash balance plan administration team to capitalize on our decades of experience designing and administering cash balance plans for a variety of business types and industries.
Cash Balance Plan Considerations
The number of new Cash Balance Plans continues to rise each year. Here are few things to consider in regards to your Cash Balance Plan.
Defined Benefit Plans’ Actuarial Equivalence Under Attack: Reasonable Becomes Unreasonable (Opinion)
Recent class action lawsuits targeting the reasonability of actuarial equivalence factors used in defined benefit plans have been making news, what does this mean for you?
Who Retains The Beneficiary Forms?
A beneficiary form determines who is entitled to the defined contribution retirement plan benefits upon the death of a participant. Is your form current?
Is Your Business a Good Candidate for a Cash Balance Plan?
Cash balance plans allow high-income earners to save more towards retirement than a defined contribution plan.
Sufficient Tax Withholding from Pension Payments
Enactment of The Tax Cuts and Jobs Act changed the way taxes are calculated for many taxpayers in 2018, including retirees receiving monthly benefits from a pension plan.
Cash Balance Plans Continue Outpacing 401(k) Plan Growth
The number of new cash balance plans adopted by employers increased 15% in 2016, compared to a 1% growth in 401(k) plans.
Who Should Consider a Cash Balance Plan? – Updated
Cash balance plans allow high-income earners to save more towards retirement than a defined contribution plan.
How to Submit a Federal Withholding Tax Deposit
Wondering how to electronically submit a federal withholding tax deposit? While it may seem daunting, the IRS has made it easy for plan sponsors to submit these payments.
Questions to Ask When Choosing an Actuary For Your Cash Balance Plan
Cash Balance Plans can provide rapid accumulation of benefits and significant tax deductions. Accurate and timely administration of a Cash Balance Plan is critical to the success of the plan, so it’s imperative to enlist the right team of professionals. The following questions can help you through the process when choosing an actuary for your Cash Balance Plan.
Cash Balance Plans Are On The Rise
Cash Balance Plans Are On The RiseAccording to the new research released in the Kravitz Inc. 2017 National Cash Balance Research Report, the number of new cash balance plans adopted by employers increased 17% in 2015. The popularity of cash balance plans have...
Cash Balance Plans: Fast Facts & Planning Tips
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....