Cash Balance Plans
What We Do
- 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
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.
The MEP/PEP Debate: Are We Better Together?
When we talk about retirement plans, many employers think of single employer retirement plans. A single employer retirement plan is simply a plan sponsored by one employer (or a related group of employers) for the benefit of its employees. In contrast, a multiple employer plan
Is There Pandemic Relief for Late Deposits?
roper handling of employee 401(k) deferral contributions and loan repayments is one of the most important responsibilities a plan sponsor undertakes. Failure to timely deposit employee deferrals and participant loan repayments is considered by many service providers to be one of the most commonly made
Terminated Employees? Important Relief is Here.
On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed into law. The Act combines the $1.4 trillion omnibus federal spending package for the 2021 fiscal year and a $900 billion COVID-19 stimulus package that enhances and expands certain provisions of the Coronavirus Aid,