Tax Deferral

One of the key benefits of a qualified retirement plan, such as a 401(k)/profit sharing plan or a cash balance plan, is tax deferral. In general, the more money contributed to the plan(s), the more tax that can be deferred.

In 2022, 401(k)/profit sharing plans limit annual contributions to $61,000, or $67,500 for those 50 and older. For those looking to contribute beyond these limits and achieve a larger tax deferral, a cash balance plan may be the solution.

Tax Deferral Possibilities

View 2022 Contribution Limits to see the tax deferral possibilities when utilizing a cash balance plan to supplement a 401(k)/profit sharing plan.

To see if your firm can benefit from a cash balance plan, contact our team of actuaries.


Contact Our Team of Actuaries

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 for 401(k)/profit-sharing plans, defined benefit plans, cash balance plans, and 403(b) plans. Pinnacle Plan Design proudly serves businesses nationwide.

 

Many owners desire larger tax deductions and accelerated retirement savings. Implementing a cash balance plan may be the best solution for such owners.

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