Knowledges

Cash Balance 401(k) Combination If your business is profitable, your 401(k) already feels maxed out, and your tax bill still looks too high, a cash balance 401(k) combination may be worth a serious look. In most cases, that means a cash balance defined benefit plan paired with a 401(k) and often profit sharing, so the…

Cash Balance Defined Benefit Plan | Retirement Actuarial Services

Eligibility, Testing, and Employee Considerations Knowledge Base Eligibility, Testing, and Employee Considerations Before a retirement plan is designed around owner tax savings, the employee side has to work too. That is where many business owners and advisors run into problems. Eligibility rules, entry dates, workforce demographics, and annual testing can all affect whether a plan…

High-Income Owner Scenarios Educational Resource High-Income Owner Scenarios If you own a successful business and your income has grown beyond what a basic retirement-plan conversation can solve, this page is for you. It walks through common high-income owner situations, explains where simpler plans may start to feel limiting, and shows when a more tailored strategy…

Overfunding Risk: Why Assumptions and Monitoring Matter Knowledge Base · Retirement Plan Design Overfunding Risk:Why Assumptions and Monitoring Matter Large tax deductions can be valuable, but they only work well when the plan is monitored as carefully as it is designed. A cash balance or defined benefit plan can create substantial tax deductions, sometimes well…

How 401(h) Medical Benefits Work Inside Qualified Plans Knowledge Base How 401(h) Medical Benefits WorkInside Qualified Plans A practical resource for employers, plan sponsors, CPAs, and advisors exploring retiree medical benefit design inside qualified pension structures. Introduction Introduction Retiree healthcare costs can put real pressure on employers and business owners, especially when traditional plan design…

Layered Plan Design: Cash Balance + Profit Sharing/401(k) Knowledge Base Layered Plan Design:Cash Balance + Profit Sharing/401(k) For CPAs, EAs, tax preparers, advisors, and high-income business owners looking for a more strategic way to reduce taxes and build retirement wealth When a Plain 401(k) Stops Doing Enough At a certain point, a plain 401(k) stops…

Debunking “Rigid DB Plan” Misconceptions Knowledge Base Debunking “Rigid DB Plan” Misconceptions If you still hear that defined benefit plans are “too rigid,” you’re usually hearing an old story. That reputation came from legacy pension designs that were often harder to explain, harder to customize, and harder for business owners to fit into real-world planning….

IRC 415(b) Limits | Knowledge Base Knowledge Base IRC 415(b) Limits What CPAs, advisors, and business owners need to know before pushing defined benefit plan deductions higher. 2025 Annual Limit $280,000 The IRS increased the annual defined benefit dollar limit under section 415(b)(1)(A) from $275,000 to $280,000 for 2025, and that figure is part of…

Defined Benefit vs 401(k): When Each Fits Knowledge Base Defined Benefit vs 401(k):When Each Fits A professional guide for CPAs, advisors, and tax professionals serving high-income business owners. If you work with business owners, you already know the pattern. A client is doing well. Income is strong. The 401(k), SEP, or SIMPLE is “maxed out.”…