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You’ve worked hard to make your business successful. But if your retirement planning has taken a back seat to your business over the years, you may feel it’s time for a change. Even if you have done some planning for retirement — by establishing a 401(k) plan, for example — you may want to contribute more toward your financial future. Business owners, however, sometimes find that the IRS limits on 401(k) plan contributions make it difficult for them to accumulate enough savings to support their lifestyle in retirement. The good news is there’s another type of retirement plan that can help: a cash balance plan. This type of qualified plan offers several advantages, including:
Cash balance plans tend to work best for those business owners and their top performers who are at least seven years older than the oldest rank-and-file employee. The greatest benefit of a cash balance plan is the ability to offer different benefit allocations to different classifications of employees. | |
1 Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Guardian® is a registered trademark of The Guardian Life Insurance Company of America, New York, NY. The Guardian Life Insurance Company of America (Guardian) New York, NY 10004-4025 © Copyright 2021 The Guardian Life Insurance Company of America. Pub11163-SBO EM (9/21) 2021-126323 (Exp. 9/23) |

Could a cash balance plan be right for your business?
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January 02, 2023