Cash Balance Plan

The powerful tax strategy for business owners.

How a Cash Balance Plan Works

There's a huge tax benefit that likely no one has told you about. By maximizing your savings and tapping into additional plan features that multiply your tax benefits, you can save up to $100K or more1 on your tax bill. See why many successful business owners have added a cash balance plan to their company's 401(k) program.

What is a Cash Balance Plan

A cash balance plan is a type of retirement plan that allows business owners to contribute up to $485,500 per year. It’s sometimes called a cash balance pension plan because it's a defined benefit plan, meaning contributors are guaranteed a specified amount in retirement.


Why it's Important

A cash balance plan allows owners to keep more of their profits and grow them tax-deferred. And because it’s a business expense, a cash balance plan can significantly reduce a company’s business taxes. In fact, owners can fund a sizable portion of retirement savings using money they would have paid in taxes.


How Fisher Can Help

Cash balance retirement plans can be complex and require a plan advisor with deep expertise. Fisher is one of America's top advisory firms with experience helping many business owners set up and manage this sophisticated strategy.


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For the Cash Balance 101 for Business Owners video

Cash Balance 101 for Business Owners

Are you missing out on tax advantaged savings? Many business owners don’t yet know about the massive tax benefits a cash balance retirement plan can offer. Watch this short video from a Fisher small business specialist to learn how a cash balance program may help you.

case balance plan chart

How Much Can You Save with a Cash Balance Plan?

Tax savings from your cash balance plan could fund a sizable portion of your retirement savings. Download this helpful infographic to see the numbers for yourself and access additional tools and resources.


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Cash Balance Case Study

Interested in seeing how a cash balance plan might work in real life? Check out how a high-earning doctor, who’s both a business owner and employer, can use this IRS-sanctioned strategy to reduce her tax bill by more than $100K2 a year.

  • Compare an ordinary tax-deferred plan with a 401(k) + cash balance plan.
  • Learn more about the rules governing cash balance plans.
  • See how savings increases lead to tax decreases.

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Cash Balance Guide

Looking to dig into the details of cash balance plans? What you need to know to unlock huge savings is right here, from the benefits of this type of plan to the challenges of building and maintaining a cash balance plan over time.

Download our guide to get answers to these questions and more:

  • What is a cash balance plan?
  • What are the benefits of a cash balance plan?
  • How does a cash balance plan work?
  • Who is eligible for a cash balance plan?

Are You Leaving Money on the Table?


Use our tool to calculate just how much you could be saving on your tax bill (and putting into your own pocket).


1 Tell us about yourself
2 Tell us about your business
Total Plan Contribution
Total Tax Reduction

Results

Cash Balance Contribution
401(k) Contribution
Annual Personal Tax Savings
Annual Corporate Tax Savings

401(k) Only

$0

Annual Tax Savings

-

Cash Balance Contribution

-

401(k) Contribution

-

Annual Personal Tax Savings

-

Annual Corporate Tax Savings

401(k) with Profit Sharing

$0

Annual Tax Savings

-

Cash Balance Contribution

-

401(k) Contribution

-

Annual Personal Tax Savings

-

Annual Corporate Tax Savings

401(k) with Profit Sharing and Cash Balance

$0

Annual Tax Savings

-

Cash Balance Contribution

-

401(k) Contribution

-

Annual Personal Tax Savings

-

Annual Corporate Tax Savings

Spreadsheet of contribution limits based on age

2024 Contribution Limits

Contribution limits typically go up each year, allowing you to save even more for retirement. Download this handy table to determine just how much you could be contributing to your own retirement—with and without applying a cash balance plan to your retirement program.

CASH balance plans

Additional Resources

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10 Essential Cash Balance Questions

If you run a successful business with steady revenue, you can save more for retirement while cutting your personal and business income taxes. Read this article to learn how.

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Tax Savings Strategies

There’s a huge tax benefit for businesses that no one may have told you about. Some business owners can save up to $100K or more in taxes annually, by using three IRS sanctioned tax strategies.

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Tax Benefits for Business Owners

Tax strategies are important for any employer, but especially for the owners of small and mid-sized businesses looking to make the most of every dollar.

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Contact Us

One of our 401(k) business specialists would love to talk to you about your company’s retirement plan needs.

Call Us

(844) 238-1247

Get Me Started

1  2 This is based on a 60 year old business owner putting away $20,500 in individual contribution, $6,500 as a catch-up contribution, $38,500 as Profit Sharing, and $266,000 as Cash Balance per 2022 contribution limits.