Retirement Plan Services

Cash Balance Plans

Certain defined contribution plans are only available to certain types of employers. State and local governmental employers, along with certain non-profits, can establish 457 plans. A 457 plan is a non-qualified, tax-advantaged plan established for your employees. Some rules applicable to 457 plans are similar to 401(k) plans, however other rules differ. It’s important to understand the terms of your 457 plan and how to best design it to meet your employees’ needs.

Cash Balance Plans with Watkins Ross

High-income earners that have been maxing out their profit sharing or 401(k) contributions but want to save more for retirement are good candidates for a CBP:

  • Professional Service Groups (Ex. Medical Practice Groups)
  • Multi-Generational Family Owned Businesses
  • Single Member S-Corporations Taking Large S-Corporation Distributions

In a CBP, the hypothetical account is credited with a principal credit and an interest credit each year, as defined by the plan document. Since these are pension plans, CBPs are required to allow an annuity form of payment, but the standard payment form is a lump sum equal to the participant’s hypothetical account balance.

Watkins Ross has been designing and administering cash balance plans to provide strategically targeted benefits and increased tax-deferred savings since 1999. We allocate resources specifically to cash balance administration and make it a primary focus of our business including personnel, technology and education resources.

Our Cash Balance Plans Brochure includes additional information. Our expert team can help you determine the best plan design to achieve your corporate goals and better prepare your employees for retirement.

Get Started Today

Contact Watkins Ross using the form below if you have questions or would like help determining if you should implement a Cash Balance Plan.

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To start your cash balance plan today or for additional questions regarding your cash balance plan, please contact:

David Paauwe | Watkins Ross

David Paauwe

President

Financial & Management Resources

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Cash Balance Plans