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At Redwood Tax Specialists, we design cash balance plans for owners of highly profitable businesses, that are focused on maximizing retirement contributions & reducing tax liability.
Cash Balance Plan
A cash balance plan is a type of employer-sponsored retirement plan that combines elements of both a defined benefit plan and a defined contribution plan. A cash balance plan allows owner's the highest allowable contributions to a qualified retirement plan. Contributions can exceed $100,000's, which can accumulate to a multi million retirement benefit in 5 - 10 years.
Is a Cash Balance Plan
Right for Your Business?
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Large annual tax deductions for the owner
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Partners can set different contribution amounts based on cash flow needs
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Contributions on behalf of employees are limited and established during plan design. Changes in personnel will impact required contributions.
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Investments grow tax deferred, building wealth faster
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At retirement (or at plan termination), assets in both plans are rolled into IRAs and continue to grow tax-deferred until withdrawn
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Older owners can make large contributions to catch up on retirement savings
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Family businesses can use high contributions for senior members as part of estate and succession plans
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