It happens every year just about the time I get used to feeling the warm sun on my face, watching a baseball game in shirt sleeves, and my golf game starts rounding into form. I wake up one day and see my breath in front of my face when I go outside.
Colors have changed and temperatures are chilly, if not downright frigid. Baseball has crowned its latest World Series Champion; Football is halfway through its season and another Basketball season has begun. Yes, Fall has replaced Summer and Winter is not far away.
It’s November and that means it’s time to take another look at your clients’ financial needs and determine if this is the year that they establish a Cash Balance Pension Plan.
- Is the client a business owner?
- Does their business have consistent annual cash flows?
- Can the client benefit from an additional business tax deduction?
- Would the client like to accelerate the growth of their retirement benefits and put away more than the maximum allowable 401(k)/Profit Sharing contributions?
Unlike traditional 401(k)/Profit Sharing Plans, maximum Cash Balance Plan allocations are a function of the participant’s age and compensation. In some instances, a business owner’s Cash Balance Plan allocation can be in the low 6-figures annually.
Add in the fact that the entire Cash Balance Plan allocation is eligible for business tax deduction considerations and the overall benefits of adding the Plan become substantial for the client.
At Actuaries Unlimited, Inc. our team specializes in creating unique retirement plan designs that help clients achieve those two primary goals: Accelerating the growth of their retirement benefits while taking tax deductions that are larger than what a 401(k)/Profit Sharing Plan will allow.
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