Retirement Plan Services
Cash Balance Pension Plans
Combine the power of a pension with the familiarity of a 401(k) — and save for retirement far beyond standard contribution limits.
What Is a Cash Balance Plan?
Retirement savings beyond 401(k) limits
A cash balance plan is a type of defined benefit plan that provides participants with a predictable retirement benefit through annual employer contributions and interest credits. Unlike a 401(k), the employer assumes the investment risk, giving participants greater certainty about their retirement benefit.
The real advantage is capacity. Cash balance plans can allow significantly larger retirement contributions than traditional defined contribution plans, particularly for older business owners and highly compensated employees. These larger contributions can also provide valuable tax benefits for the business.
Why it Matters
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Dramatically Higher Limits
Contribute several times what a 401(k) alone allows — the older you are, the higher your annual limit.
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Significant Tax Savings
Contributions are deductible, directly reducing taxable income for the business and its owners.
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Catch Up on Savings
Built for owners who got a late start — squeeze 20 years of retirement savings into 10.
What RMS Provides
End-to-End Cash Balance Services
From initial design through annual filings, our team handles everything a well-run cash balance plan requires.
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Plan Design & Strategy
Partnered with a team of actuaries we design contribution credits, interest crediting rates, and overall plan structure around your goals, income, and workforce, integrating a 401(k) plan when needed.
- Contribution and interest credit design
- Combined 401(k) + cash balance strategies
- Owner and key employee contribution optimization
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Plan Administration
We manage the annual recordkeeping, participant accounting, and reporting that keep your plan accurate and current.
- Participant account management
- Annual contribution calculations
- Actuarial valuation coordination
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Compliance Testing
Cash balance plans carry rigorous annual testing requirements — especially when combined with a 401(k). We handle all of it.
- Nondiscrimination and combined plan testing
- Minimum funding requirements
- Top-heavy testing
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Government Filings
We prepare and manage required government filings, helping ensure they are accurate and submitted on time.
- Signature-ready Form 5500 preparation
- Required schedules and notices
- Deadline tracking and filing management
- PBGC filings
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Plan Corrections
If something's gone wrong in your plan or one you inherited, we guide you through IRS and DOL correction programs step by step and handle the execution.
- IRS and DOL correction programs
- Step-by-step guidance and full execution
- Coordination with your record keeper and advisors
Is This Right for You?
Who Should Consider a Cash Balance Plan?
Cash balance plans aren't just for law firms and medical practices. Here's the profile of a strong candidate.
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Company Profile
- Owners and professionals with high taxable income
- From solo owners to companies with growing teams
- Highly profitable companies with predictable cash flow
- Businesses with consistent earnings
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When to Consider
- Age 45+ and looking to accelerate retirement savings
- Consistently maxing out current 401(k) deduction limit
- Able to commit to consistent plan funding
- Willing to contribute 8–10% for eligible employees
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Advanced Strategies
- Combined 401(k) + cash balance design
- Fixed or variable interest crediting rates
- Creditor protection for plan assets
- PBGC coverage when applicable
See What a Cash Balance Plan Could Do for You
Our consultants can run the numbers for your age, income, and staff — and show you exactly what a cash balance plan could do for your tax bill.
...very responsive and explains things as needed."
Get Started
Ready to supercharge your retirement savings?
Let's find out what a cash balance plan could mean for your retirement and your tax bill.
Schedule a Free Consultation
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