Cash Balance Plan2024-04-03T19:33:29+00:00
Cash Balance Plans

Use a Cash Balance plan to maximize your retirement savings

Let Definiti help you accumulate retirements savings quickly with higher tax-deductible contributions.

Already have a plan with Definiti?

Spend more time running your business. Definiti experts take on the heavy lifting.

Our retirement plan experts take care of many of your plan administration needs and help you maximize the potential of your cash balance plan.

Our retirement plan experts take care of many of your plan administration needs and help you maximize the potential of your cash balance plan.

Comprehensive retirement plan services

From plan design, administration and compliance, 3(16) services to recordkeeping Definiti’s RPCs are by your side from the very beginning.

First-rate retirement experts

Our nationwide team of actuaries and analysts have serviced thousands of cash balance plans.

Helpful resources at your fingertips

The Definiti Academy, educational newsletters, and other resources cover all the legislative and regulatory updates that impact your plan.

World-class data security

Our Information Security Plan and investments in cybersecurity technology, and infrastructure ensures participant data is secure.

Comprehensive retirement plan services

From plan design, administration and compliance, 3(16) services to recordkeeping Definiti’s RPCs are by your side from the very beginning.

First-rate retirement experts

Our nationwide team of actuaries and analysts have serviced thousands of cash balance plans.

Helpful resources at your fingertips

The Definiti Academy, educational newsletters, and other resources cover all the legislative and regulatory updates that impact your plan.

World-class data security

Our Information Security Plan and investments in cybersecurity technology, and infrastructure ensures participant data is secure.

Comprehensive retirement plan services

From plan design, administration and compliance, 3(16) services to recordkeeping Definiti’s RPCs are by your side from the very beginning.

First-rate retirement experts

Our nationwide team of actuaries and analysts have serviced thousands of cash balance plans.

Helpful resources at your fingertips

The Definiti Academy, educational newsletters, and other resources cover all the legislative and regulatory updates that impact your plan.

World-class data security

Our Information Security Plan and investments in cybersecurity technology, and infrastructure ensures participant data is secure.

We design and administer high-performing cash balance and defined benefit plan across the country.

Number of Defined Benefit plans in the Definiti portfolio

Number of Defined Benefit Plan participants

Definiti has the solutions to keep your Cash Balance plan on track.

The complexities of cash balance plans require careful calculations, thoughtful planning, and annual valuations to build a cash balance plan that works for you and your employees—exactly what Definiti does best.

Support

Administrative assistance with plan setup, annual nondiscrimination testing, and signature-ready government filings.

Direction

Ask questions to build a plan that meets any employer’s goals and plan population.

Vision

Prepare an annual plan valuation and recommend contribution amounts that keep your plan funded appropriately.

Confidence

Reduce your administrative burden and help manage investment volatility as your plan grows and you approach retirement.

Is a cash balance plan the right fit for your company?

The cash balance plans Definiti services are typically used by professional companies such as a physician’s office or legal practice. The best fit are profitable companies with:

  • Consistent cash flow.
  • Owners who are 40 or older and are generally older than other staff.
  • Owners who need to maximize tax-deductible contributions beyond the contribution limits of a defined contribution plan.
  • Owners are behind on retirement savings goals and need to accumulate funds rapidly.
  • Owners who can afford to make larger contributions based on their age and compensation.

The Advantages of a 401(k) + Cash Balance Plan

Designated as an IRS-qualified “hybrid” plan, cash balance plan participants have an account that grows in two ways: through a defined contribution credit and an interest credit. The structure benefits employers and employees alike. Using a 401(k) with a cash balance plan side by side allows a plan sponsor to take advantage of flexible plan design and make higher retirement contributions while while enjoying a tax-sheltered strategy.

Reduced taxes
Investment Tax, Top Marginal Income, and Medicare Tax may be lowered or eliminated.

Accelerated savings
With significantly higher annual contribution limits than 401(k)s, participants can quickly build their pre-tax retirement savings.

Increased flexibility
Different contribution amounts can be specified for different participants groups. Participants can easily roll over their account to an IRA or another plan.

Enhanced protection
Assets are shielded from creditors in bankruptcies or lawsuits.

Leave the complex calculations to us.

Take advantage of our suite of services.

  • We get to know your workforce inside and out to create customized contributions for individuals and/or groups
  • Holistic plan design based on employers’ goals and specific needs
  • Diligent compliance review and nondiscrimination testing
  • Preparation of signature-ready government filings
  • Assessment of complex testing requirements from ERISA
  • Annual valuation from our actuary team
  • Regular monitoring and measurement of your plan’s performance and funded status
  • Calculate the minimum required contribution and the maximum tax-deductible contribution
  • Asset and liability modeling
  • Fund status strategy and guidance including recommended contribution amounts
  • Monitor market fluctuations that could impact your future contributions
  • Control investment volatility as your plan increases in size and you approach retirement

Let’s discuss what’s next

New to Definiti or need more information? Let’s talk.
1-888-912-3653

Are you a Definiti customer interested in learning more about a Cash Balance plan? Let’s connect or request a proposal.

Let’s discuss what’s next

New to Definiti or need more information? Let’s talk.
1-888-912-3653

Are you a Definiti customer interested in learning more about a Cash Balance plan? Let’s connect or request a proposal.

Get Started
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