retirement planners & administrator​

Cash Balance Plans and Defined Benefit Pension plans

Both Cash balance and defined benefit plans are different versions of a pension plan.  These plans are increasingly popular with business owners who are making a lot of money and in search of very large tax deductions.

Our Partners

401k plan administrators 401k plan administrators 401k plan administrators 401k plan administrators retirement planning services retirement planning services
401k plan administrators 401k plan administrators 401k plan administrators 401k plan administrators retirement planning services retirement planning services

Secure Retirement with Cash Balance and Pension plans

A robust retirement strategy begins with choosing the right plan. Cash balance and traditionalurb for a pension plans provide a reliable foundation for your financial future by offering guaranteed income, employer-funded contributions, and tax advantages. These plans help safeguard your retirement while ensuring long-term stability and protection against outliving your savings. Whether you’re exploring options for yourself or your employees, our experts at ERA Admin are here to guide you every step of the way. Start building your secure retirement today.

retirement planners & administrator​

Frequently Asked Questions

What is a cash balance plan?

A cash balance plan is a type of defined benefit plan that provides the structure of a traditional pension but incorporates features of a defined contribution plan.  The assets in a cash balance plan are pooled together and invested together in one account, which grows annually based on contributions made by the employer and a credit for interest determined by a pre-established formula. While the account balance resembles the format of a 401k, the plan itself is employer-funded and guarantees retirement benefits.

What is a defined benefit pension plan?

A defined benefit pension plan is a retirement plan in which the employer promises a specified benefit amount upon retirement, based on factors such as years of service, age, and salary history. Unlike defined contribution plans, the employer is solely responsible for funding and managing the investments to ensure that promised benefits are paid to employees.

What are the benefits of pension plans?

Pension plans, including cash balance plans and traditional defined benefit pension plans, offer several advantages:

  • Guaranteed Income: Participants receive a stable and predictable income stream during retirement, reducing financial uncertainty.
  • Employer-Funded: Contributions are generally made by employers, requiring minimal responsibility on the participant’s part for funding the plan.
  • Tax Advantages: Contributions made by employers are tax-deductible, and participants enjoy tax-deferred growth on the funds until distribution.