A Cash Balance Plan is a Defined Benefit Plan that looks like a Money Purchase Plan. Like a Money Purchase Plan, fixed contributions are credited to each participant at the end of each year. In addition, participants receive interest credits based on the interest rate definedin the plan. The credit is a fxied rate specified in the plan. Increases or decreases in the value of the plan’s investments do not directly affect the benefits promised to the participants. The investment risks and rewards are borne solely by the employer?

If you are a financial advisor that works with company sponsored retirement plans, you more than likely deal with different types of plans from SEPs to Simple IRAs to 401(k)/Profit Sharing palns and Defined Benefit plans. If this is the case, do you spend enough time evaluating your SEP Plans?

Download PDF What is a Solo 401(k) Plan? A Solo 401(k) plan is a 401(k) plan for a self-employed individual, partnership, or a business owner with no employees. In general, a spouse who is an owner or employee of the plan sponsor may also participate. What are some advantages? Same contribution limit as a full…