Cash Balance 101

| 7/12/2017

Cash Balance Plan 101 is now in session. If you do not know how the rules have changed in the past three years, you and your organization may be missing out on some tax-saving opportunities.

The U.S. Government Accountability Office reports that as many as half of all households 55 and older have no retirement savings at all, and there is a growing fear that those that do have savings do not have enough tucked away to maintain their lifestyle in retirement. This retirement shortfall presents a difficult reality for individuals accustomed to running their own businesses and having significant financial control over their destiny during their careers. This mounting dilemma has not gone unnoticed, and in 2014 the IRS widened the tools available to high income earners. Now healthcare professionals may be able to defer income tax-free up to $300,000 a year, take an ordinary business deduction in the year the practice makes the contribution, and enjoy the flexibility to decide when and how much income to draw each year in retirement.

As a result of viewing this on-demand webinar, you should be able to:

  • Recognize key similarities between 401(k) profit-sharing plans and cash balance plans
  • Determine how cash balance plan funding models work and how you may be able to take advantage of a $2.7 million tax deferral
  • Identify when deductions can be taken to reduce an individual or business tax obligation
  • Apply strategies to “catch up” on retirement savings or accelerate the retirement timeline
  • Use effective disbursement plans that maximize the cash balance plan withdrawals to minimize the tax impact in retirement
Download presentation slides