A Guide to Cash Balance Plans

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Why should you hire Professional House Cleaning
Services?
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What is a Cash Balance Plan? A cash balance plan
is a defined benefit retirement plan that
expresses the retirement benefit in terms that
are more characteristic of a defined contribution
plan for example a profit sharing plan. In
other words, a cash balance plan communicates the
promised benefit to employees as an account
balance rather than an annual amount payable for
life.
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How Does A Cash Balance Plan Work? Each
participant has a notional account that resembles
that of a 401(k) or profit sharing plan. This
account is credited with contribution credits and
interest credits each year.
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How Is The Cash Balance Plan Similar To A Pension
Plan? Provides retirement benefits based
on a stated formula. Actuarial calculation
of contributions and certifications
Annuity benefits must be offered as an option to
the participant. Benefits are guaranteed
by the Pension Benefit Guaranty Corporation
(PBGC). Participants benefits are not
affected by the actual investment return of the
trust.
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Cash Balance Plan - Benefits for Your
Organization Possible opportunity for
increased tax deductions Ability to
weight benefits toward key employees
Incentive for recruiting and retaining the best
talent More predictable costs than
traditional DB plans
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Cash Balance Plan - Benefits for Your Employees
Fully funded by the plan sponsor
Potential to quickly accumulate tax-deferred
wealth Hypothetical account balances,
making retirement contribution options easy
to understand The benefit is
portable in the event of a job change or
termination
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Get Help From Heartland Consulting Group,
Inc. Heartland Consulting Group works with small
and medium-sized businesses ranging from
sole-proprietorships to companies with hundreds
of employees. For more details, Visit
http//heartcg.com/cash-balance-plan
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