---
title: "Third Party Administrator Hartford"
date: 2015-02-02
author: "Robbie Petrillo"
---

# Third Party Administrator Hartford

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 Hartford, CT (Connecticut), as well as nationally.

### Cash Balance Plans

A cash balance plan is a hybrid between a defined contribution plan (e.g. 401(k)/profit sharing plan) and a defined benefit plan. A cash balance plan is a defined benefit plan that looks like a defined contribution plan. Legally it is a defined benefit plan. Therefore the defined benefit limits apply – i.e. the annual contribution on behalf of any participant is *not* limited to $69,000 (2024). Instead, the ultimate retirement benefit cannot exceed the defined benefit limit of $275,000 annually (i.e., the lump sum amount cannot exceed approximately $3.5 million at age 62).

In a cash balance plan a “theoretical” account balance (or “TAB”) is maintained on behalf of each participant. On an annual basis the TAB is credited with a “pay credit” and an “interest credit.” The pay credit can be a flat dollar amount or a percentage of pay and can vary by employee (again, the pay credit is not limited to the annual defined contribution limit). The maximum pay credit is a function of age. For example, a 35 year old may receive a pay credit of up to $90,000 while a 55 year-old’s pay credit can be as high as $245,000. The interest credit is often based on an index of U.S. Treasury Securities, a fixed rate in the 3% – 5% range or some other factor allowable under IRS Regulations.

### Ideal Cash Balance Candidates

- Highly compensated owners
- Owners looking to put more money away
- Low Employee/Owner ratio
- Owners older than the employees (on average)
- Non-cyclical industry
- Prime cash balance candidates include professional groups: 
    - Physicians
    - Attorneys
    - CPAs
    - Dentists
    - etc.

### Contact: Third Party Administrator Hartford

Pinnacle Plan Design is proud to offer retirement plan administration services in Hartford, CT (Connecticut) and surrounding areas including Bridgeport, New Haven, Stamford, Waterbury, Norwalk, Danbury, New Britain, Greenwich, Bristol, and Meriden.

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