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A cash balance plan can be one of the most powerful retirement tools available to business owners, but understanding how…
Continue Reading 31% Cash Balance Plan Rule Table [2025 & 2026]
A cash balance plan can work well for owners with multiple income streams. However, the structure becomes more complex when…
Continue Reading Can You Use a Cash Balance Plan if Your Income Comes From Multiple Businesses?
Most business owners look at a cash balance plan illustration and jump straight to the biggest number on the page.…
Continue Reading How to Read a Cash Balance Plan Illustration [Step by Step]
Many business owners set up a solo cash balance plan expecting years of simple, predictable contributions. Then the business grows,…
Continue Reading When a Solo Cash Balance Plan Stops Being ‘Solo’
A solo cash balance plan can select many different interest crediting rates. This includes fixed, variable and even market-based. At…
Continue Reading Why We Don’t Recommend Market-Based Crediting for Solo Cash Balance Plans
Thanks to the SECURE Act 2.0, employer contributions can now be Roth. While this sounds like a big development, it…
Continue Reading Can Employer 401(k) Contributions be Roth? [Hint: Yes, But There’s Catch]
We know that physicians are excellent candidates for cash balance plans. They need all the tax deductions they can get.…
Continue Reading How To Structure Large Group Cash Balance Plans [Step by Step]
Defined benefit and cash balance plans offer a lot of customization. When hiring non-owner employees, employers can limit when new…
Continue Reading One & Two Year Eligibility Options for Defined Benefit Plans Explained
Cash balance plans offer large tax deductions, but they can be complex. There’s a lot of terminology that you must…
Continue Reading Cash Balance Plans: Why Your ‘Pay Credit’ Does Not Equal Your Contribution
It is very common for defined benefit plans to be accompanied by 401(k) plans. These 401(k)s will typically include both…
Continue Reading Why Your 401(k) Employee Deferral Must be Included on Your W2
You have a lot of flexibility when it comes to the timing of defined benefit or cash balance plan contributions.…
Continue Reading Why You Should Not Make Weekly or Monthly Contributions to a Defined Benefit Plan
Defined benefit and cash balance plans are excellent retirement structures. But what happens if you don’t fund or file for…
Continue Reading Defined Benefit Plans: What Happens When You Don’t Fund or File for a Year?
Defined benefit and cash balance plans allow for substantial tax deferred contributions. But did you know that the first year…
Continue Reading How to Calculate a ‘Deemed’ Wage for a Prior Service Defined Benefit Plan
A defined benefit (DB) or cash balance plan is one of the most powerful retirement and tax-planning tools available to…
Overfunded defined benefit plans can create a tax problem upon termination. However, very few clients are even aware of this…
Continue Reading Excise & Income Taxes on Overfunded Defined Benefit Plans: The Complete Guide
A “personal defined benefit plan” usually refers to a defined benefit plan designed primarily for one business owner. The appeal…
Continue Reading Personal Defined Benefit Plan Rules: The #1 Design
Vesting is one of the most important design features in a cash balance plan, but it is often misunderstood. Many…
Continue Reading Vesting for Cash Balance Plans: Cliff vs Graded
A cash balance plan is often described as a defined benefit plan that “looks like” a 401(k). The reason is…
Continue Reading Cash Balance Plan Hypothetical Account Balance: What is it?
Many business owners ask whether they can have two defined benefit plans at the same time. The short answer is…
Continue Reading Can I Have Two Defined Benefit Plans? Here are the IRS Rules
Most business owners hear “cash balance plan maximum benefit” and assume it’s a simple annual contribution limit. In reality, the…
Continue Reading Cash Balance Plan Maximum Benefit: How is it Calculated?
Defined benefit plans can deliver huge tax deductions. But annual allowable contributions can vary widely from year-to-year. Too many owners…
If you own multiple businesses, you may have been asked to sign a Joinder Agreement. If you control multiple entities,…
Continue Reading Joinder Agreements: What are they and why do I need one?
Business owners often ask whether they can roll IRA dollars into a profit-sharing plan and buy life insurance. You certainly…
You may have heard that when you contribute to a cash balance plan along with a 401(k) profit-sharing plan, your…
Continue Reading Why is Profit-Sharing Capped at 6% With a Cash Balance Plan?
A premium deposit account is a side account held at the insurer. You add money there to help pay future…
Continue Reading Premium Deposit Account: What is it and Benefits to Fund
The core concept is using qualified-plan dollars to buy permanent life insurance. The “tax-free” part usually means the life insurance…
Continue Reading Tax-Free Way to Turn $1 Million of Nvidia Stock into Life Insurance
Many clients are unsure who truly makes retirement plan contributions. The crucial issue is who sponsors the plan and claims…
Continue Reading Do Retirement Plan Contributions Come from My Personal or Business Bank Account?
Frontloading defined benefit or cash balance plans can make a lot of sense. However, there are a few pitfalls to…
Continue Reading Pitfalls of Using ‘Years of Service’ to Frontload a Defined Benefit Plan
Many business owners want large cash balance plan deductions but have relatively low W-2 compensation. At first glance, those goals…
Continue Reading How to Make a Large Cash Balance Plan Contribution with a Low W-2
Naming a trust as a retirement plan beneficiary is becoming more and more common. However, it comes with many pitfalls.…
Continue Reading Should a Revocable Trust be the Beneficiary of a 401(k) or IRA? Key Considerations
A cash balance plan is a type of defined benefit plan with account style features. It credits pay credits and…
Continue Reading Cash Balance Plan with Insurance: Ensuring the Plan Document Allows It
Defined benefit plans have tax advantages, but who manages them? Many parties play distinct roles in managing a defined benefit…
Continue Reading Who Manages a Defined Benefit Plan? Actuaries, TPAs, and Financial Advisors
When a cash balance plan is established, there is a pay credit formula that is used in the plan document.…
Continue Reading When to Use a Pay Credit Formula of 200% to 300% [Tips + Rules]
Tax drag is the reduction in investment returns caused by ongoing taxes. It occurs when earnings in a taxable account…
Continue Reading Tax Drag: How Does it Work with Traditional and Roth IRAs?
When married spouses each own and operate their own separate business entities, navigating retirement plan rules can become surprisingly complicated.…
Continue Reading Cash Balance Plan Rules When Two Spouses Own Separate Businesses
ETRADE offers a strong 401(k) platform known for its investment flexibility and straightforward fee structure. These features make ETRADE a…
Continue Reading How Business Owners Pair an E*TRADE 401(k) with a Cash Balance Plan
Many business owners look for retirement plan solutions that blend flexibility, tax efficiency, and strong investment support. Charles Schwab has…
Continue Reading Charles Schwab 401(k) + Cash Balance Plan Blueprint: Our #1 Strategy
Retirement planning for small business owners often requires a blend of flexibility, strong investment options, and advanced tax strategies. Vanguard…
Continue Reading Vanguard 401(k) + Cash Balance Plan Strategy for Business Owners
Many business owners and professionals look for retirement plan providers that offer strong investment platforms and administrative support. Fidelity is…
Continue Reading Fidelity Cash Balance Plan + 401(k) Combo: Is It a Good Option?
A cash balance plan is one of the most powerful retirement strategies for high-income business owners and professionals. It combines…
Continue Reading Setting up a Cash Balance Plan: A ‘How to’ Guide
Retirement plans are designed to help both business owners and employees save for the future in a tax-advantaged way. However,…
Continue Reading What is a Highly Compensated Employee (HCE) in Retirement Plans?
One of the most powerful retirement plan structures is a combination of a profit-sharing 401(k) and a cash balance plan.…
Continue Reading What is the Gateway Test? Cross-Testing Retirement Plans
Most Safe Harbor 401(k) plans follow the standard 3-4% employee match. That is usually the most cost effective for the…
Continue Reading The Benefits of a 3% Non-Elective Safe Harbor Contribution for Cross Testing
We deal with many solo business owners. But sometimes business owners merge their businesses for a variety of reasons When…
Continue Reading Cash Balance Plan Options When Multiple Businesses Merge
Combining a cash balance plan with a 401(k) plan can be one of the most powerful retirement strategies for business…
Continue Reading Testing Requirements When Combining a Cash Balance Plan with a 401(k) Plan
Dentists face unique financial challenges that require careful planning. High income potential, student loan debt, and practice ownership create complex…
Continue Reading Financial Planning for Dentists: How to Build Wealth Beyond Your Practice
Dentists face a unique challenge when planning for retirement. They often earn high incomes but have limited years to save…
Continue Reading Retirement Plan for Dentists? Here’s Our Top Choice
Dentists face unique financial challenges due to high income, equipment costs, and practice management expenses. Effective tax planning can make…
Continue Reading Top 10 Tax Planning Strategies for Dentists
A cash balance plan is a type of defined benefit retirement plan that allows business owners to make large, tax-deductible…
Continue Reading Cash Balance Plan Tax Deferral: How Does It Work?
In designing a Cash Balance Plan, one of the most pivotal decisions is selecting the interest crediting rate (ICR). This…
Continue Reading Interest Crediting Rates 101: Balancing Stability and Growth in Cash Balance Plans
A cash balance plan is a special kind of defined benefit plan that displays retirement benefits as a steadily growing…
Continue Reading Cash Balance Plan Example Calculation: The Accrued Benefit
A cash balance plan is often referred to as a hybrid retirement plan because it combines features of both defined…
Continue Reading Why is a Cash Balance Plan Called a ‘Hybrid’ Retirement Plan?
For sole proprietors using defined benefit plans, contribution percentages are governed by specific IRS rules. Two of the most common…
Continue Reading Defined Benefit Plan Rules: Why the 31% Rule Works Best for Younger Owners
A cash balance plan is a type of defined benefit retirement plan that resembles a defined contribution plan in its…
Continue Reading What is a Cash Balance Plan Pay Credit? Complete Guide
In today’s business environment, choosing the right retirement plan structure can dramatically impact how much you save and deduct each…
A cash balance plan is a type of defined benefit plan that provides participants with a specific promised benefit at…
Continue Reading How to Calculate a Cash Balance Plan Accrued Benefit
Cash balance plans and 401(k) profit-sharing plans offer tremendous flexibility for sole proprietors. Two key contribution limitations—known as the 6%…
Continue Reading Why the 31% Rule Works Well for Younger Sole Proprietor Business Owners
At Emparion, approximately 75% of our retirement plans are sponsored by S-Corps and less than 5% are with partnerships. The…
Continue Reading Structuring a Defined Benefit Plan with Partnership and S-Corps
Retirement planning is a critical step for every dental professional. As a dentist, your income can fluctuate, and your career…
Continue Reading The Complete Guide to Retirement Planning for Dentists
Retirement plans typically include specific entry dates that determine when employees become eligible to participate. Understanding how these entry dates…
Continue Reading How to Determine Retirement Plan Entry Dates
A third-party administrator (TPA) plays a vital role in retirement plan management. They specialize in 401(k) administration and compliance oversight.…
Continue Reading Third-Party Administrator 401(k): 5 Reasons You Need One
A 401(k) plan is one of the most popular retirement savings tools. It allows employees to defer income and grow…
Continue Reading Plan Administrator 401(k): Why Do I Need One?
A third-party administrator (TPA) plays a crucial role in retirement plan management. They provide specialized services to employers sponsoring plans.…
Continue Reading Third-Party Administrator for Retirement Plans: What Do They Do?
Defined benefit plans are powerful retirement tools for small business owners. They promise guaranteed retirement benefits based on specific formulas.…
Continue Reading Common Defined Benefit Plan Mistakes for Small Business Owners
Retirement planning involves choosing the right savings vehicle. Two popular options are the 401(k) and the cash balance plan. Each…
Continue Reading Is a Cash Balance Plan Better Than a 401(k)? It Depends
Defined benefit plans are structured retirement vehicles that promise a specific benefit at retirement. They differ from 401(k) or IRA…
Continue Reading Defined Benefit Plan Strategies for C-Corps and S-Corps [2026 Update]
A cash balance plan is a hybrid retirement plan combining pension features with account-style benefits. It is technically a defined…
Continue Reading How Does a Cash Balance Plan Work? [Updated for 2026]
Cash balance plans are powerful retirement structures blending pension and 401(k) features. However, these plans are complex and require careful…
Continue Reading Common Cash Balance Plan Mistakes? Here’s Our Top 5
Defined benefit plans remain one of the most powerful retirement strategies for business owners and professionals. They promise a specific…
Continue Reading How to Create a Defined Benefit Plan: 5 Step Guide
A defined benefit plan is a retirement structure promising a specific benefit at retirement. Unlike 401(k)s, benefits are predetermined by…
Continue Reading Key Features of a Defined Benefit Plan: Here’s Our Top 3
Cash balance plans are hybrid retirement plans that blend pensions with defined contribution features. They provide predictable contributions and understandable…
Continue Reading Cash Balance Plan Strategies for S-Corps and C-Corps [+ IRS Rules]
A cash balance plan is a type of retirement plan for businesses. It is technically a defined benefit plan. However,…
Continue Reading Cash Balance Plan Definition: The Dummies Guide
Small business owners often look for ways to reduce taxes and save for retirement. Traditional pensions are less common today.…
Continue Reading Small Business Pension? Try a Cash Balance Plan
An actuary plays a vital role in retirement plan administration. But their focus is on cash balance and defined benefit…
Continue Reading What is a Cash Balance or Defined Benefit Plan Actuary?
Defined benefit plans are powerful retirement vehicles designed to guarantee income in retirement. They differ from defined contribution plans, where…
Continue Reading Types of Defined Benefit Plans: Here are the Top 4
A target benefit plan is a type of defined contribution retirement plan. It looks like a hybrid between traditional defined…
Continue Reading What is a Target Benefit Plan? The Complete Guide
A cash balance plan is a defined benefit plan that has some common characteristics of a defined contribution plan. But…
Continue Reading Why are there no set annual funding amounts for a cash balance plan?
Do you have an IRA and also a need for permanent life insurance? You could be in luck. There is…
Is it possible for a client to keep a defined benefit plan open while simultaneously transferring funds to an IRA…
For business owners, combining a Roth conversion with a defined benefit plan can unlock significant tax-saving opportunities. A Roth conversion…
Continue Reading The Tax-Free Roth Conversion: Understanding the DB Plan Offset
Defined benefit plans are powerful retirement tools that allow business owners and corporations to make significant deductible contributions. However, these…
A backdoor Roth IRA helps high earners fund Roth accounts. It bypasses income limits on direct contributions. You contribute to…
While S-Corps have significant tax advantages, they do have some limitations compared to partnerships and C-Corps. But the good news…
Continue Reading Our #1 Entity Structure: An LLC with S Corp and C Corp Partners
Many people want to use retirement funds to secure life insurance. Normally, direct purchases from an IRA are not allowed.…
Continue Reading Buying Life Insurance with IRA Money: The #1 Way
A defined benefit plan offers small business owners a powerful retirement structure. Investors typically allocate assets to stocks, bonds, or…
Continue Reading Split-Funded Defined Benefit Plan: The Complete Guide
Defined benefit plans remain powerful retirement structures for business owners and employees. They promise guaranteed benefits based on salary, service,…
Continue Reading Defined Benefit Plan Amendments: Top Reasons to Amend [+ Tips and Tricks]
Including life insurance in a profit-sharing plan can enhance both retirement planning and family protection. Yet, it involves navigating IRS…
Continue Reading A ‘How to’ Guide for Life Insurance in a Profit-Sharing Plan
Creative tax strategies can produce life-changing results. Retirement plans combined with life insurance are a perfect example. This case study…
Profit sharing plans are versatile retirement vehicles. Employers can allocate discretionary contributions based on profitability each year. These contributions grow…
Continue Reading Tax Benefits of Life Insurance in a Profit-Sharing Plan
Profit sharing plans are flexible retirement vehicles. They allow employers to make discretionary contributions based on business profitability. Unlike defined…
Defined benefit plans are unique retirement structures. They provide guaranteed income based on salary, service, and actuarial assumptions. The IRS…
Continue Reading What Type of Life Insurance is Allowed in a Defined Benefit Plan?
Life insurance in a defined benefit plan is a highly technical subject. It combines elements of retirement funding, actuarial calculations,…
Continue Reading Life Insurance in Qualified Plans Powerpoint Presentation [Slide Deck]
A variable annuity pension plan offers a unique blend of defined-benefit predictability and investment-linked flexibility. While these plans have been…
Continue Reading Variable Annuity Pension Plans: What Are They and How Do They Work?
Life insurance is not usually the first tool people consider for retirement planning. However, the IRS does allow policies inside…
Continue Reading Life Insurance in Retirement Plans: The Complete Guide
Defined benefit plans are powerful retirement tools for business owners. Adding life insurance can enhance both protection and tax benefits.…
Continue Reading Are You a Good Fit for Life Insurance in a Defined Benefit Plan?
Life insurance inside a defined benefit or cash balance plan offers unique planning opportunities. But strict IRS rules govern how…
Continue Reading IRS Rules on Life Insurance in Defined Benefit Plans Explained
In today’s complex retirement landscape, defined benefit plans continue to offer high-income business owners a reliable path to building a…
Continue Reading 7 Benefits of Adding Life Insurance to a Defined Benefit Plan
Administering defined benefit or cash balance plans can be challenging. This is especially true when life insurance is included in…
Continue Reading How to Administer Life Insurance in a Defined Benefit Plan
Many business owners and professionals ask whether life insurance can be purchased inside a profit-sharing plan. The short answer is…
Continue Reading Our #1 Example of Life Insurance in a Profit-Sharing Plan
Cash value life insurance is more than just protection. It can also serve as a retirement savings tool. These plans…
Continue Reading Cash Value Life Insurance Retirement Plans: The Complete Guide