Plan Highlights

Cash Balance Plans

A Cash Balance Plan is a type of defined benefit plan that can be presented in an easy-to-understand “account balance” format. Each year, the employer generally credits an eligible participant’s account with a pay credit and an interest credit. This design is often used to target higher, tax-deductible contributions for owners and key executives while still providing benefits for eligible employees as required.

• Employer-funded plan; annual contribution is determined through actuarial calculations.
• Can be structured to support accelerated retirement saving for owners approaching retirement age.
• May help reduce taxable income while building long-term, creditor-protected assets.

401(k) / Profit Sharing Plan

A 401(k) and/or Profit Sharing Plan can be paired with a Cash Balance Plan to improve flexibility and help satisfy plan design goals. Profit sharing contributions are generally discretionary and can be allocated using formulas selected to fit your objectives (subject to applicable ERISA/IRS nondiscrimination rules).

• Supports employee recruitment and retention through competitive benefits.
• May be designed to complement the Cash Balance strategy and overall contribution goals.
• Allows additional savings opportunities depending on eligibility and plan terms.

Post-Retirement Medical Expense Reimbursement (401(h))

When structured appropriately, incidental benefits can be a “tax trifecta”: contributions may be deductible, growth may be tax-deferred, and qualified distributions may be tax-free for eligible medical expenses.

Economics of Pension Life Insurance

Certain qualified plan designs may include insured benefits, such as a pre-retirement death benefit. When permitted and properly structured, premiums may be treated as part of plan costs, and death benefits may provide family protection features.

• Policy design, charges, and crediting rates vary by carrier and product.
• Illustrations and projections are hypothetical and not guarantees.

Estimated Plan Cost

Use the fields below to document estimated setup and annual administrative costs (optional). These values will print in the PDF.

This proposal is for educational and planning purposes only and is based on information provided. All illustrations and projections are hypothetical, do not reflect actual investment performance, and are not guarantees of future results.

Retirement Actuarial Services, LLC does not provide legal or tax advice. Please consult your tax and legal advisors for guidance on your specific situation. Plan design, eligibility, limits, and compliance requirements apply and will be reviewed during the implementation process.

Printed proposals are intended to summarize planning concepts and are subject to change based on final census data, plan document terms, and actuarial assumptions.