Cash Balance Plans

Under the right conditions a cash-balance plan combined with a 401(k) plan can give a turbo boost to a small business owners retirement savings. A cash balance plan is like traditional defined-benefit pension plans with a 401(k) twist. Participants receive a target benefit at retirement but that target benefit is stated as an account balance rather than as a monthly income stream. Cash-balance plans have generous contribution limits that increase with age. People 60 and older can sock away well over $200,000 annually in pretax contributions. SetAway works with business owners and investment advisors to provide a detailed cost analysis that will determine if this plan design can work for you.