Cash balance plans
Cash balance plans for business owners and partners.
A cash balance plan is a qualified retirement plan that can sit beside your 401(k) and allow far larger deductible contributions, especially for owners over 50.
Nashional Investments · Updated October 2026
How it works
Each participant has an account that grows by an employer contribution and a guaranteed interest credit. The employer bears the investment risk: if the plan's pooled investments earn more than the credit, future contributions can go down, and if they earn less, contributions go up.
Who it fits
- Owners and partners seeking a deduction of $50,000 or more a year, with income of $250,000 or more.
- Highly profitable businesses, including family-owned firms.
- Medical and dental practices, law and CPA firms, engineering and consulting firms.
- Owners close to retirement who want to accelerate savings.
Questions
Common questions about cash balance plans.
How much can I contribute?
Limits depend mainly on age and income, and rise sharply after 50. An actuary sets the exact figure each year. For many owners in their 50s and 60s, combined contributions can reach several times the 401(k) limit.
Do I have to cover employees?
Yes, a cash balance plan must meet nondiscrimination rules, which usually means some contribution for eligible employees. Plans are often paired with a 401(k) profit-sharing plan to manage that cost.
Can I stop contributing?
These plans are meant to run for several years. You can amend or terminate a plan, but frequent changes can raise questions with the IRS.
See if a plan fits your practice.
We coordinate with a plan actuary and your CPA to design, fund and manage the plan.