Why CBIZ?
Our team has the specialized experience needed to help you design a cash balance plan that can increase savings and reduce tax liability. CBIZ is uniquely positioned to serve as both an adviser and third party administrator with experience in preparing, performing and implementing annual administration, plan document, and consulting services.
Our Approach
CBIZ offers a complete solution to help you assess, install, maintain, and unwind a cash balance plan.
Our team can help you assess whether a cash balance plan would be beneficial for you.
Our team can help you establish a cash balance plan.
Our team can help with annual maintenance of your cash balance plan.
Our team can help you unwind your cash balance plan at the appropriate time.
Assess
Our team can help you assess whether a cash balance plan would be beneficial for you.
CBIZ can:
- Coordinate with an accountant to determine if a cash balance plan is a good tax deduction and savings strategy for you.
- Review business revenue and cash flow, compensation and ideal contribution size.
- Obtain employee census information.
- Perform illustrations, assess multiple contribution strategies and provide pricing for your plan.
Install
Our team can help you establish a cash balance plan.
CBIZ can:
- Design a customized benefit formula.
- Draft the legal plan document.
- File a determination letter with the IRS, if necessary.
- Provide a financial vehicle specifically tailored for cash balance plans.
Maintain
Our team can help with annual maintenance of your cash balance plan.
CBIZ can:
- Perform actuarial valuation.
- Provide a contribution range and communicate with you and your accountant for you to contribute to your plan.
- Monitor annual limits and test allocations for nondiscrimination.
- Issue benefit statements.
- Provide a signature-ready IRS Form 5500.
- Provide an Annual Funding Notice for distribution to participants.
- Fulfill PBGC funding and filing requirements, if necessary.
Unwind
Our team can help you unwind your cash balance plan at the appropriate time.
CBIZ can:
- Determine when it is the end of the plan’s life and develop an exit strategy.
- Consult with your accountant and an advisor.
- Calculate the final benefit upon plan end date.
- Set up an IRA and roll funds over.
- Reimburse fees paid by the plan with any remaining dividends.
Why Cash Balance Plans?
Cash balance plans have become a popular choice for businesses to provide significant retirement accumulations for business owners and key employees while meeting the employer obligation to provide a meaningful retirement benefit to employees. They generally allow for significantly higher deduction levels and annual retirement accumulation than 401(k) or Profit Sharing Plans, but operate in a way that makes them easier for employees to understand and easier for businesses to administer than traditional defined benefit pension plans.
Why Cash Balance?
Business owners and professionals can achieve large tax deductions* that are much larger than with a 401(k) plan alone, giving them the ability to accelerate retirement savings.
The ability to leverage your existing 401(k) plan contributions to staff is a key advantage. It’s possible you may have little to no additional contribution obligation to staff in order to enjoy the benefits of a cash balance plan.
Assets are ERISA protected from creditors and are typically invested in conservative investments that tend not to be as vulnerable to market volatility.
