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Are you looking for a way for to have your business fund your retirement?

If you are interested in larger contributions than a 401(k) plan will permit, a cash balance pension plan may be right for you.

Someone 60 years or older can possibly receive $200,000 or more in pretax contributions in a cash balance plan, whereas the maximum 401(k) contribution limit for someone age 60 would be closer to $60,000. In combination with a 401(k) plan, a cash balance plan can allow much larger contributions to be made to boost your retirement savings quickly in the years as you get closer to retirement.

The cash balance plan is a type of pension plan that is maintained in pooled, managed investments, yet allows for tracking individually so that participants may see the value of their individual portfolios. Where the market value of assets will play a role in the final value of a 401(k) benefit, the cash balance plan is treated in a similar manner to a traditional defined benefit plan, such that a participant’s final benefit payment is not determined by the market, but on a predetermined formula that establishes the benefit to be paid at retirement.

Establishing a cash balance plan along with your 401(k) plan can provide your business with a significant tax deduction along with an effective tool to supercharge your retirement savings. Please contact us if you are interested in a review to see if a cash balance pension plan is right for you.

Blue & Co., LLC acquires Alerding CPA Group

Blue & Co., LLC acquires Alerding CPA Group

Carmel, Ind. (November 23, 2022) – The accounting and consulting firms of Alerding CPA Group (Indianapolis, Ind.) and Blue & Co., LLC (Carmel, Ind.) have announced their merger. The combined firm will operate as Blue & Co., LLC (Blue & Co.), effective December 1, 2022. This acquisition will provide Blue & Co. with greater market […]

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Not-for-Profit Single Audit Requirements – Evaluation of Revenue Sources

By: Holly Fields, CPA, Senior Manager Not-for-profit organizations (NFPs) that receive federal financial assistance over certain levels, either directly from a federal agency or indirectly through state or local agencies, may be required to have a single audit performed under Federal Uniform Guidance. Single Audit Requirements A single audit includes not only an audit of […]

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Occupational Mix Survey: What You Need to Know

Every three years, the Centers for Medicare and Medicaid Services (CMS) requires any Hospital that is subject to the Inpatient Prospective Payment System (IPPS) to complete an Occupational Mix Survey (OMS). This data is then used to calculate an Occupational Mix Adjustment Factor (OMAF). The occupational mix adjustment impacts a hospital’s average hourly wage and […]

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