Tax Deductible Wealth Accumulation:
Contributions are fully tax-deductible,
minimizing current tax burdens and
allowing business owners to keep more
of their hard earned money. Plus, the
additional funds grow without capital
gains taxes.
Enhanced Contribution Limits:
Unlike the 401(k) alone, which limits
contributions to $66,000 ($73,500 if age
50), individual limits are drastically higher
for most business owners.
Creditor Protection:
Like a 401(k) account, Cash Balance
plans are ERISA Qualified and enjoy one
of the highest levels of protection
available. From creditors to Bankruptcy
proceedings and civil lawsuits, claims
against funds held in ERISA retirement
accounts are prohibited.
Flexibility & Portability:
Plans can be designed for differing
benefit levels amongst owners and high
earners. At plan termination, or reaching
age 59.5, participants can elect to roll
funds over to another qualified account
such as an IRA or 401(k) plan.
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