Using a traditional employer retirement plan may seem like a smart strategy for many businesses. But they may not deliver all the advantages you need. Implementing a customized plan instead can provide you with benefits that can change the financial course of your business in many positive way.
For example, combining a Cash Balance Plan with a 401(k) Plan can give you, among other benefits:
- the opportunity to reduce your taxable income by up to $300,000 or more a year.
- a way to transfer the risk of cash, that could be subject to creditors, to a protected qualified plan.
- an effective buy-in tool for younger partners who want to avoid coming up with a down payment to buy out soon-to-retire partners.