United States
"Cash Balance Pension Plan"

What is a Cash Balance Pension Plan ?

A cash balance plan is an employer-sponsored plan that guarantees a certain account balance in retirement, based on years of service and salary.

How Cash Balance Pension Plan WorkS ?

An employer contribute to an account on behalf of each employee. An employee is guaranteed those contributions plus a certain interest credit at either a fixed or variable rate. 

Who can Participate in Cash Balance Plan ?

There is no requirement that all employees participate in cash balance plan. The lower of 40% of non-excludable employees or 50 participants must receive benefit from plan.


Who Can Contribute to a Cash Balance Plan ?

Only businesses can sponsor a Cash Balance pension Plan. Your employer will contribute to the cash balance plan.

cash balance pension plan contribution limits

Cash balance plan has no contribution limits. The yearly cap for a cash balance pension varies according to your income, age, target date, and fund balance.

Withdrawal Options of Cash Balance Pension Plan

Plans offer you choose between lump-sum payment and monthly payout or annuity. You can take plan with you if you leave for another job & roll the funds into an IRA.

How to Set Up a Cash Balance Pension Plan ?

click here to apply

You will need to work with financial planner, CPA and other professionals to make sure the plan is optimized for your specific needs and funding goals.