Author Topic: Cash Balance Plan  (Read 484 times)


  • Apprentice
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Cash Balance Plan
« on: September 06, 2019, 03:29:28 PM »
I want to share something that I just learned about this week. If you have high income and have maxed out the $60K or so in the 401K and are still looking to defer taxable income and you either own your company or are a significant stock holder or have influence with those that are then look into a 'Cash Balance Plan'.  We haven't pulled the trigger yet as it's so new to us but we're getting quotes and should have it set up easily by year end. as an S-corp, in addition to  making distribution checks on taxable K-1 amounts, it appears that we can also contribute a stock percentage ownership of pre-tax money into this plan far exceeding the 401K amount.  For example, a 61 year old can have the company contribute up to $274,000 or so of pre tax money, which of course reduces K-1 taxable. this is in addition to the $60K or so 401K.  It sounds to good to be true.  If anybody has experience with this please write a reply. thanks


  • Shogun, Administrator
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Re: Cash Balance Plan
« Reply #1 on: September 08, 2019, 06:23:25 AM »
Not familiar with this.

Sounds great if you have tons of cash flow coming in. Will ask my accountant.



  • Apprentice
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Re: Cash Balance Plan
« Reply #2 on: September 10, 2019, 08:35:34 AM »
There are a lot of breaks for the self employed.  Unfortunately I think it is the wage earners getting hosed by taxes, especially the higher income wage earners.  My wife and I do pretty well, but 95% of it is w2 income, the rest are capital gains and dividends.  Taxes are crazy.