10 Ideal Canidates for Cash Balance Plans

1.  Highly profitable companies of all types and sizes
          - Usually indicated by the owner’s desire for a larger tax deduction.
          - Principals making more than $250,000/year

2. Family businesses 
          - Plan can be used as a component of succession planning

3. Closely held businesses with few owners 
          - Several owners want greatly enhanced retirement plan.

4. Law firms of all sizes
          - Asset protection is often very important to this profession.

5. Medical groups of all sizes 
          - Asset protection is often very important to this profession. – Redundant

6. Professional firms of all types 
          - CPAs, engineers, architects…

7. Older owners who have delayed saving for retirement 
          - Need to squeeze 20 years of retirement saving into 10

8. Those who highly value asset protection
           - Anti-alienation clause in ERISA protects all qualified assets from creditors in the event of bankruptcy or lawsuit.

9. Those who want an enhanced benefits package for executives 
           -Want to attract and retain high caliber employees

10. Sole proprietors with income exceeding $250,000/year 
           - All entity-types 
 

When a business owner or professional partner wants a higher tax deduction / contribution than the 401(k) Profit Sharing limit of $49,000, Cash Balance Plans may be the ideal solution. As outlined in the table below, the Cash Balance limits are much higher than 401(k) Profit Sharing limits.