Overview

Cash balance plans combine the features of a traditional pension plan with the look and feel of a 401(k) plan. They also provide tax-deferred contributions beyond 401(k) limits, tiered benefits, a fixed interest rate, minimal sponsor risk, creditor protection, and a clear benefit structure.

Services

Milliman designs cash balance plans tailored to your ownership structure, financial situation, and retirement timeline. Services include:

Plan Design and Documents: Custom tailor-made plan design to meet the needs of our clients and plan document preparation
Annual Services: Annual actuarial funding report, AFTAP certification, Form 5500 including Schedule SB, annual funding notice, discussion of valuation results, annual benefit statements
Plan Termination: Completion of all necessary steps to fully terminate plans and distribute benefits to participants
Additional consulting: Plan design review, plan change analysis, plan mergers, discrimination testing issues, custom reporting, onsite meetings, audit responses, and communication projects.

Consider a cash balance plan if you:

Want contributions beyond defined contribution plan limits
Are not significantly affected by economic volatility
Can contribute 5-10% of employee compensation
Are an older business owner with younger staff

BENEFITS

Benefits for small business owners

Maximize retirement benefits

Take advantage of higher retirement benefits and targeted designs than are possible with a defined benefit/cash balance approach.

Generate tax savings

Leverage age and compensation profiles of owners and staff for sizeable deductible contributions.

Comprehensive support

Get guidance through every step of the life of the plan, from initial design to ongoing services to distribution of plan benefits.

Trust the experts

Deal directly with actuaries, not salespeople.

Protect your assets

Design qualified pension plans that are beyond the reach of creditors. If you choose an annuity payout, benefits are guaranteed for your lifetime.

Invest freely

Choose any investment product you wish.

Resources