A cash balance plan can increase an employer’s contribution significantly when combined with a 401(k). In some instances, the two plans side-by-side are an ideal design. This ultimate plan combo allows a plan sponsor to take advantage of flexible plan design — both for the cash balance and 401(k) plan — and make higher participant contributions while enjoying a tax-sheltered strategy.

The IRS has published their compliance program and priorities for 2021, which outlines some of the red flag issues that could trigger a retirement plan audit. Simply waiting for the dreaded audit letter to arrive isn’t a smart strategy. Take steps now to be ready for an audit even when you don’t expect one.