JOURNAL ARTICLE

Supercharging retirement: Tax benefits and planning opportunities with cash balance plans.

  • Published In: Tax Adviser, 2025, v. 56, n. 12. P. 7 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Prescott, Ian 3 of 3

Abstract

The article focuses on the benefits and mechanics of cash balance plans as a retirement savings option, particularly for high-income individuals and business owners. Cash balance contributions can significantly exceed 401(k) limits, allowing older participants to contribute between $150,000 to $300,000 annually, which is fully deductible. These plans are especially advantageous for professional service firms and sole proprietors, as they provide substantial tax deferral opportunities and can be tailored to favor key employees. However, they come with compliance requirements and necessitate careful planning to avoid pitfalls. [Extracted from the article]

Additional Information

  • Source:Tax Adviser. 2025/12, Vol. 56, Issue 12, p7
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • ISSN:0039-9957
  • Accession Number:189698739
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