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Business 401(k) / Cash balance plans
Cash balance plans

Supercharge savings on an accelerated timeline.

A defined-benefit layer with contribution limits far above a 401(k) — built for business owners and high earners who want to accelerate retirement savings and cut taxable income.

Advanced plan design

Not one solution fits all.

A cash balance plan is a defined-benefit plan that allows far higher annual contribution limits than a 401(k). For owners and high earners, that means accelerating retirement savings and reducing tax liability in the same move.

It fits best for firms with predictable cash flow, fewer employees, and owners looking to shelter more income through large, tax-deductible contributions — with a willingness to commit for several years and fund contributions for eligible employees.

01 | Why consider one

Save more, faster — and deduct it.

Far higher limits

Cash balance plans allow annual contributions well above what a 401(k) permits — the fastest legitimate way to shelter income.

Large tax deductions

Contributions are tax-deductible to the business, directly reducing taxable income in high-earning years.

Accelerate late

Owners who started saving late can front-load significant retirement savings in a compressed window.

Owner-focused design

Plan design can direct the majority of contributions to owners and key people while meeting employee requirements.

02 | Three ways to use it

Pair it, stack it, or stand it alone.

A cash balance plan rarely works in isolation. We design it to sit alongside the rest of your retirement strategy — most often on top of a 401(k) — so every layer of savings is working.

Most common Paired with a 401(k)

The classic combination. The cash balance plan stacks on top of your 401(k) deferrals and profit sharing to maximize the owner’s total deductible contribution.

Layers on existing deferrals & match
Profit sharing bridges the two plans
Ideal for firms with a few employees
Owner-only Paired with a Solo 401(k)

For self-employed owners and single-member businesses, a cash balance plan pairs with a Solo 401(k) to push tax-deferred savings dramatically higher.

Coordinated design through EGPS
Maximizes contributions for one owner
Modeled by your age and income
On its own As a standalone plan

A cash balance plan can also stand alone when a 401(k) isn’t in the picture — a focused, high-limit vehicle for owners who want one plan done well.

A single, high-limit DB plan
Predictable annual funding target
Simple when a 401(k) isn’t needed
Stacking the limits

How the layers add up.

Paired with a 401(k), a cash balance plan stacks on top of your existing deferrals and profit sharing — pushing an owner's total deductible contribution well into six figures.

Layer 1 401(k) deferral Your personal salary deferral into the 401(k) — the base of the stack.
Layer 2 Profit sharing An employer contribution that adds to the 401(k) and helps satisfy plan-design requirements.
Layer 3 Cash balance credit The defined-benefit contribution on top — the layer that carries the largest, age-weighted amount.

Limits depend on age, income, and plan design and change annually. We model your specific ceiling before anything is established.

03 | Is it a fit

Best when a few things line up.

A cash balance plan rewards commitment. It works best for owners who can fund consistently and think in multi-year horizons.

Predictable cash flow Consistent profits make the required annual funding straightforward to sustain.
Fewer employees Smaller teams keep the required employee contributions efficient relative to the owner benefit.
A goal to reduce taxable income Owners looking to shelter significant income through large, deductible contributions.
A multi-year commitment Cash balance plans are meant to be funded for several years, not opened and closed at will.
Willingness to fund for staff Owners provide annual contributions for eligible employees as part of the design.
04 | How we design it

From projection to a funded plan.

1
ProjectWe model your contribution ceiling by age and income — standalone or stacked on a 401(k) — and the deduction it creates.
2
DesignWe design the plan and coordinate the actuarial work and employee benefit structure through EGPS.
3
EstablishWe put the plan documents, investments, and required actuarial certification in place.
4
Fund & fileAnnual funding, investment oversight, and the filings that keep the plan compliant year over year.
05 | FAQ

Questions owners ask.

See what you could contribute.

Send us your age, income, and current plan, and we'll model a cash balance design — on its own or stacked on your 401(k) — with the deduction it creates.