This article has been updated for 2022. 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 […]

What Is a Cash Balance Plan

August 19, 2020

What Is a Cash Balance Plan? How Does a Cash Balance Plan Work?

This article has been updated for 2022. 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 […]

How are Defined Benefit Plans Taxed

July 1, 2020

How are Defined Benefit Plans Taxed? Impact on Income and Payroll Taxes.

This article has been updated for 2022. 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 […]

Defined Benefit Plan Investment Return Target

April 16, 2020

Investment Return Target for a Defined Benefit Plan. What’s the Right Answer?

This article has been updated for 2022. 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 […]

Investment Returns Impact Defined Benefit Contributions

March 5, 2020

How Investment Returns Impact Defined Benefit Plan Contributions

This article has been updated for 2022. 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 […]

Setting Up a Defined Benefit Plan Early in the Year

February 26, 2020

Setting Up a Defined Benefit Plan Early in the Year. What Are the Advantages?