This article has been updated for 2023. What Is a Cash Balance Plan? A Cash Balance Plan is a type of retirement plan. However, unlike individual retirement vehicles, such as IRAs, Cash Balance Plans are employer-sponsored. Thus, an individual cannot adopt a Cash Balance Plan unless he or she is self-employed. Additionally, if an individual […]
This article has been updated for 2023. Introduction: How Are Defined Benefit Plans Taxed? Defined Benefit Plans are a powerful retirement and tax planning tool. In this article, we will explain how Defined Benefit Plans are taxed. We will start by describing how Defined Benefit Plans are funded and distributed. Next, how the employer and […]
This article has been updated for 2023. Defined Benefit Plan Target Return Rate What investment return should I target in a Defined Benefit Plan? Financial advisors ask us this question quite a bit. While we cannot give investment advice, we will provide you with the information needed to arrive at your own conclusion. Specifically, we […]
This article has been updated for 2023. The Impact of Investment Returns How do investment returns impact Defined Benefit Plan contributions? In this article, we will explore that question in depth. At a high level, the impact of investment returns depends on several factors, including the Defined Benefit Plan’s funded status, the size of the […]
This article has been updated for 2023. Early Defined Benefit Adoption It’s human nature to take action as a deadline approaches. For example, why do you think CPAs are busier in April than February? Not surprisingly, it’s the same for clients setting up a Defined Benefit Plan. Historically, we’ve seen Defined Benefit inquiries and setups […]
