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"Enhancing Retirement Benefits for High-Income Earners Through a Cash Balance Plan"

Discover how one organization expanded retirement savings for high-income employee-owners beyond 401(k) limits. Learn how cash balance plans offer powerful tax advantages and compliance with nondiscrimination testing-without adding complexity to your workforce.

High-income earners often face a unique retirement planning challenge—IRS contribution limits on traditional 401(k) plans fall short of meeting their needs. This is especially true for those  who tend to begin saving later due to schooling and retire earlier than most - like lawyers or doctors. 

This case study examines how implementing a cash balance plan enabled significantly higher tax-deferred savings, enhanced benefits by up to $6.3 million, and maintained compliance with nondiscrimination rules—all without increasing plan complexity. It also highlights how added staff contributions supported retention goals and yielded deductible employer benefits.

Download this case study to learn:

• Why 401(k) contribution caps can hinder high-income retirement planning
• How layering a cash balance plan can dramatically increase savings
• Three plan design options with varying benefit levels and staff costs
• How employers can support key staff retention through added benefits
• The impact of FICA savings and potential state tax advantages

Don’t let contribution limits hold back your top talent. Explore how a tailored cash balance plan can provide meaningful retirement solutions for high earners.

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