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Is a cash balance plan a good fit?

4/3/2024

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I'm often asked about Cash Balance Plans. They are pension plans that allow for much larger contributions, in addition to the standard 401(k) and profit sharing contributions.

In general, they work well for small professional businesses, with business owners of any age, that know they will have significant and ongoing revenue and would like to limit their taxes on the business' income.

Here's a short article from the National Association of Plan Advisors I liked with some basics about whether it's a good fit:  When Might a Cash Balance Plan Be a Good fit?


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