Cash balance plans have enjoyed a recent resurgence in popularity. However, these plans, which can provide tax-deductible benefits as much as five times greater than 401(k) profit sharing plans, have actually existed for more than 30 years. When the Pension Protection Act of 2006 (PPA) resolved much of the legal uncertainty of these plans, small and large companies alike showed a renewed interest. According to a recent research report, the number of cash balance plans increased by more than 23% from 2006 to 2007 and more than 75% of existing cash balance plans are sponsored by companies with fewer than 50 employees.
In our special “Need to Know” Series on Cash Balance Plans, the Robin Weingast & Associates team will walk you through everything you need to know about these popular plans.
As always, the Robin Weingast & Associates team is here to help. If you have any questions about cash balance plans, please contact us and we’ll be happy to help.