Author Archive

Good article on Cash Balance Plans

January 6, 2009

The January 2009 edition of the Journal of Accountancy has a great article about the cost/benefits of Cash Balance retirement plans (http://www.journalofaccountancy.com/Issues/2009/Jan/PlanDesignInTheBalance.htm).  I promise it’s not too long or overly technical, but it shows why these plans can provide great tax benefits and the ability to save for retirement in amounts well beyond the $49,000 annual limit in traditional defined contribution plans.  And, you can maintain your existing investment relationships as there is no requirement to “bundle” the design & administration of the plan with the investments.

I’m happy to share more about why a cash balance or other retirement plan does or does not benefit your business, but figured this provides a unbiased view and some basic education.  While your retirement plan  may have suffered during 2008, this provides you a vehicle for far greater retirement funding & tax deductions.