Cash Balance Plans

  • Annual retirement funding can range up to $250,000 per plan participant

  • A hybrid plan that has the look and feel of a defined contribution plan with the high funding limits of a defined benefit plan

  • The contribution amounts within the Cash Balance plan can be custom-tailored for each owner, employee, or group of employees

  • Generates significant federal and state tax savings which offset the overall cost of the plan

  • Usually works best when designed with a companion 401(k)/profit sharing plan

  • Distributions can be rolled to a personal IRA or any other qualified retirement plan such as a 401(k) plan
Cash Balance

A Cash Balance plan is a hybrid form of a defined benefit plan whose level of employer funding from year to year is quite predictable.  Further, the participant statements are easy to understand since they resemble a traditional profit-sharing or defined contribution statement.  

Initially, RPS will gather the needed employee census data from the client who also identifies funding priorities.  Using this data, RPS prepares a complimentary, custom-designed Cash Balance analysis that is reviewed with the client, and the client’s investment advisor, CPA, or attorney, and modified if necessary. 

  • All funding for this retirement plan comes from the employer; employees cannot make personal contributions
  • Usually, annual funding is required and RPS will calculate a minimum/maximum range of funding
  • The federal and state tax savings derived from the Cash Balance plan usually more than funds contributions to the rank and file employees and the administrative cost of the plan

RPS Blog

IRS Announces 2021 Retirement Plan Contribution Limits
IRS Announces 2021 Retirement Plan Contribution Limits

IRS Announces 2021 Retirement Plan Contribution Limits

Sierra Betterley October 27, 2020 Contribution Limits 401k Employers IRS 0

The Internal Revenue Service announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2021.  Technical guidance detailing these items are in Notice 2020-79. The following table details the plan contribution limits by year for your convenience

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Meet the Experts – Stan Fogle
Meet the Experts – Stan Fogle

Meet the Experts – Stan Fogle

Sierra Betterley August 24, 2020 Meet the Experts 2020 Retirement 0

Meet Stan Fogle, our newest Senior Plan Analyst from Michigan. Stan joins us with over 20 years experience in the pension industry! Now if he could just find his golf ball…

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August 31st Notice Deadline Additional Pandemic Relief
August 31st Notice Deadline Additional Pandemic Relief

August 31st Notice Deadline Additional Pandemic Relief

Nathan Carlson August 6, 2020 401k Covid IRS Payment Protection Plan Retirement Safe Harbor 0

On June 29, 2020, the IRS issued Notice 2020-52 in response to the COVID-19 pandemic providing welcome relief, however, plan sponsors must act quickly to take advantage of the relief by adopting the appropriate amendments and issuing participant notices by August 31, 2020.

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Meet the Expert – Andy Yost -Newest Plan Analyst 2020
Meet the Expert – Andy Yost -Newest Plan Analyst 2020

Meet the Expert – Andy Yost -Newest Plan Analyst 2020

Sierra Betterley June 29, 2020 Meet the Experts 2020 0

For our next Meet the Expert profile, meet Andy Yost, Plan Analyst. Job Title?  Plan Consultant How long have you worked for RPS Plan Administrators?  8 months, but I'm planning to stay for 30 years. What does a typical workday for Andy Yost entail?  I

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