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Cash Balance Plans
Accelerate Retirement Savings with Purpose
Cash balance plans offer higher contributions and bigger tax breaks.
Cash balance plans are ideal for business owners seeking to save aggressively for retirement while reducing their annual tax burden. At Herbert Financial, we help you implement these defined benefit plans to supercharge contributions beyond traditional 401(k) limits. They’re especially valuable for high-income earners looking for consistent, tax-deferred growth.
These plans combine the structure of a pension with the flexibility of a personal retirement account. Business owners can contribute significantly more than with standard retirement plans, often exceeding $100,000 per year. If you’re behind on retirement savings or want a powerful tax strategy, this is your next step.
What is a Cash Balance Plan?
A cash balance plan is a type of defined benefit retirement plan that allows employers to credit each participant’s account with a set percentage of their yearly compensation plus interest. Unlike 401(k)s, which are defined contribution plans, cash balance plans promise a fixed annual benefit at retirement. They’re popular among business owners and professionals with high earnings who want to rapidly increase retirement savings and reduce taxable income. These plans must be set up and funded annually, and they require actuarial certification and IRS compliance. When designed properly, they work well in tandem with 401(k) plans and profit-sharing programs.
Defined Benefit Plan
Promises a fixed retirement payout formula.
Tax-Deferred Growth
Earnings grow without yearly tax impact.
Actuarial Certification
Required valuation to stay IRS-compliant.
High Contribution Limits
Annual savings far exceed 401(k) caps.
Service Benefits
Standard retirement plans often fall short for high-income earners who want to save aggressively or catch up fast. Without a strategic plan, these individuals miss out on powerful tax savings and long-term compounding. Herbert Financial designs and manages custom cash balance plans that protect your income, reward your success, and prepare you for the future.
- Maximize annual retirement contributions
- Slash taxable income for high earners
- Combine with existing 401(k) plans
- Meet all IRS and actuarial requirements
Document Detail
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Get in Touch
Phone Number
+1 (818) 213-1388
