Pinnacle Plan Design is a third party administrator (TPA) for employer-sponsored qualified retirement plans. We specialize in retirement plan design, administration and actuarial consulting. Pinnacle is proud to offer retirement plan administration services in Chicago, IL (Illinois), as well as nationally.
Cash Balance Plans
Many owners desire larger tax deductions and accelerated retirement savings. Implementing a cash balance plan may be the best solution for such owners. Recent legislation encourages more and more professionals and successful business owners to adopt this type of plan.
In a cash balance plan, a “theoretical” account balance (or “TAB”) is maintained on behalf of each participant. Thus, each participant in the cash balance plan has a TAB that resembles those in a 401(k) or profit sharing plan (defined contribution “DC” plans).
At the end of the plan year, an actuary calculates the contributions and creates a report detailing the amount of money to be credited to each eligible employee in the cash balance plan. This report often includes three funding options:
- Minimum Required Contribution (MRC)
- Amount to “fully fund”
- Maximum Deductible Contribution
For more information, read Cash Balance Plans: Understanding the Funding Range.
Contact: Third Party Administrator Chicago
Pinnacle Plan Design is proud to offer retirement plan administration services in Chicago, IL (Illinois), and surrounding areas including Winnetka, Lake Forest, Wilmette, Kenilworth, Lake Bluff, Glencoe, Barrington, Hinsdale, Oak Brook, River Forest, Burr Ridge, Clarendon Hills, and Western Springs.