Insights

Cash Balance Pension Plans

September 20, 2024

Rational Wealth Solutions

A cash balance pension plan is a tax-deferred (qualified) retirement plan that provides an alternative means of potentially accelerating retirement savings with the benefit of tax deductibility.

Participant accounts exhibit the combined characteristics of a traditional defined benefit (DB) plan, including high contribution amounts and guaranteed benefits, with those of a defined contribution (DC) plan, where each participant maintains an account with a portable balance.

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