A Defined Benefit Cash Balance Plan401(k) Combo

November 26, 2019 | posted in: Accountants | by

Pension law will allow a company to, in effect, “stack” a cash balance (defined benefit) pension plan on top of a 401(k) plan. When structured properly, small business owners have the ability to put tens of thousands of additional dollars into retirement accounts each year, and get a tax deduction for every dollar contributed.Who should consider a Pension/401(k) Combo Plan? While these plans are a great option to consider for anyone wanting to play catch-up for retirement, self-employed or small business owners, who are able and want to sock away large amounts of money in a tax-advantaged manner, could benefit from these plans as well. Being near 50 or older helps.Call us to review how a combo plan can be used to increase tax deductions and retirement savings for your clients.