Cash Balance Plans: Contribute More Than a 401(k) Allows
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Who works in your business?
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Defer over $300k of income annually with a cash balance plan.
A pension your business funds on top of a 401(k), sized by your age and pay.
Answer questions about your business, then share your contact details for a review. Completing the assessment does not enroll you in a plan.
Maximize Your Tax Deduction with Life Insurance
Did you know you can own life insurance inside your Cash Balance Plan? This powerful strategy allows you to:
- Deductible funding. The plan pays the premium out of deductible contributions; you report only the annual economic-benefit cost of the pure insurance (Table 2001, historically PS-58) as income — a fraction of the premium.
- Income-tax-free protection. Your beneficiaries receive the pure insurance amount income-tax-free; the policy's cash value is taxed to them as a plan distribution, and proceeds count toward your estate.
- A larger deduction, within limits. Funding protection alongside your retirement benefit can support a larger contribution — the insurance just has to stay incidental: broadly, premiums under 50% of contributions for whole life, 25% for term or universal.
"A Smart Way to Protect & Save"
Leverage your plan to fund protection for your loved ones while reducing your current tax bill.
Holding life insurance in a qualified plan is governed by the IRS incidental-benefit rules (Rev. Rul. 2004-20), which cap how much protection a plan can carry. Whether it suits you depends on your age, income, and plan design — this is general information, not tax advice. Review it with your own tax advisor before funding a policy.
Start with your business, then discuss the plan
The assessment gathers your business details for an initial review. You can also use the calculator below before sharing contact information.
Describe your business
Share your business type, team and planning goals.
Review your inputs
Check your answers and provide contact details if you want a review.
Discuss what comes next
Confirm which information is needed before a plan is designed.
Calculate Your Potential Savings
Adjust the sliders below to see how a custom pension plan can maximize your retirement contributions and reduce your tax liability.
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