Resources
A cash balance plan is a powerful retirement tool for solo business owners who want to save more than standard…
Continue Reading Cash Balance Plan Pay Credit Options: How to Select the Best One
Every year, business owners receive two documents that describe the same retirement plan. One is the investment account statement from…
Continue Reading Why Does the Account Balance on Form 5500 Differ from My Account Statement?
If you are 50 or older and earned more than $150,000 in wages in 2025, your 401(k) catch-up contributions work…
Continue Reading The New 2026 Roth Catch-Up Contribution Rule: What It Means for You
Most business owners assume that each year’s retirement plan contribution belongs to that year’s tax return. One plan year, one…
Every year around March, we get a version of the same phone call. A business owner filed an extension for…
Continue Reading Filing Your Tax Return Early Doesn’t Kill Your Contribution Deadline
“Tax-free income for life” is the phrase that sells private placement life insurance — and it’s the phrase that should…
Continue Reading Tax-Free Income for Life: How PPLI Policy Loans Actually Work
A lot of high earners are sitting on a permanent life insurance policy they bought years ago — a whole…
Continue Reading How to 1035 Exchange Whole Life or Variable Life Into PPLI Without Triggering Taxes
If you’re a high earner trying to build tax-free wealth, two strategies tend to come up once you’ve exhausted the…
Continue Reading PPLI vs. the Mega Backdoor Roth: Two Tax-Free Strategies Compared
Private placement life insurance (PPLI) is often described as a “low-load” or “institutionally priced” insurance contract, and for good reason.…
Continue Reading Examining the Expense Charges Inside a Private Placement Life Insurance Policy
When a sophisticated client first encounters a Private Placement Variable Annuity (PPVA), the most efficient way to frame it is…
Continue Reading Is PPVA a ‘Super IRA’? How the Analogy Holds Up
Advisors often reach for a familiar shorthand when introducing Private Placement Life Insurance (PPLI) to a sophisticated client: it works…
Continue Reading Private Placement Life Insurance (PPLI): Why We Call it the ‘Super Roth’
Private placement insurance products have become a core tool for sheltering tax-inefficient assets inside an institutionally-priced wrapper. The two most…
Continue Reading PPLI vs PPVA: A Comparison for High Net Worth Investors
There’s a moment in nearly every defined benefit plan that owns life insurance when the participant has to write a…
Continue Reading How to Determine Fair Market Value for a Life Insurance Buy Out
Schedule SB is a report filed with your retirement plan’s annual Form 5500. For a cash balance plan, it shows…
Continue Reading Schedule SB to Form 5500 Explained in Plain English
Most professional athletes have two things in common: (1) high income; and (2) young ages. As a result, they have…
Continue Reading The #1 Retirement Structure for Professional Athletes
There’s a retirement plan in the IRS playbook that gets little attention. It’s called a money purchase pension plan and…
Continue Reading How Money Purchase Pension Plans Work for Solo Business Owners
Buried inside a 1974 IRS revenue ruling is a math problem most retirement plan participants will never see. But if…
Adding life insurance to a cash balance plan is one of those strategies that sounds almost too good to be…
Continue Reading The 50% Incidental Benefit Rule in Cash Balance Plans
Life insurance has long been a permitted, if heavily regulated, feature inside qualified retirement plans. The general framework imposed by…
Continue Reading The 2-Year and 5-Year Seasoned Money Rules: Life Insurance in Profit Sharing Plans
Cash balance plans are powerful tax planning tools. Contributions can often exceed $300,000 annually. But what options do you have…
Continue Reading 10 Strategies to Maximize Your Year One Cash Balance Plan Contribution
Adding life insurance to a defined benefit plan is permitted under the incidental benefit rules, and for the right business…
Life insurance is widely understood as a financial protection tool. But in the hands of advanced planners, it can function…
Continue Reading Tax Strategies for Life Insurance: The Complete Guide
Many retirement plan participants look to self-direct investments in their plans. That’s where they first encounter the terms “qualified” and…
Continue Reading Qualified vs. Non-Qualified Assets in Retirement Plans: What You Need to Know
Fair market value is one of those concepts that sounds simple until the Internal Revenue Service starts scrutinizing it. When…
Continue Reading Determining IRS compliance for Fair Market Value (FMV) of Non-Qualified Assets
When a new cash balance plan crosses the desk, the conversation almost always turns to one question: how much can…
Continue Reading The Downside of Market-Rate Interest Crediting for Cash Balance Plans
When it comes to managing a defined benefit plan, two financial concepts are frequently discussed yet often confused: termination liability…
Who This Applies To You currently have an Individual 401(k) account at Charles Schwab using Schwab’s plan document and account…
Continue Reading Adding a Roth Account to Your Charles Schwab Individual 401(k)
Who This Applies To You currently have a Fidelity Self‑Employed 401(k) and are using Fidelity’s plan document and account package.…
Continue Reading Adding a Roth Account to Your Fidelity Self‑Employed 401(k)
Who This Applies To You currently have an ETRADE Individual 401(k) using ETRADE’s plan document and account package. This typically…
Continue Reading Adding a Roth Account to Your E*TRADE Individual 401(k)
John Hancock provides retirement plan investment platforms and recordkeeping, but defined benefit and cash balance plans are designed and administered…
Continue Reading John Hancock Defined Benefit and Cash Balance Plans: The Complete Guide
Many business owners assume Truist Bank handles every aspect of defined benefit or cash balance plans. However, these plans require…
Continue Reading How to Open a Defined Benefit or Cash Balance Plans at Truist Bank
When working with a firm like Raymond James, many business owners assume that implementing a defined benefit or cash balance…
Continue Reading Raymond James Defined Benefit and Cash Balance Plans [Step by Step]
Edward Jones operates one of the most extensive networks of financial advisors in America. But how much do you know…
Continue Reading Edward Jones Defined Benefit and Cash Balance Plans: The Ultimate Guide
When working with a firm like LPL Financial, many business owners assume that setting up a defined benefit or cash…
Continue Reading LPL Financial Defined Benefit and Cash Balance Plans: The Definitive Guide
When working with a firm like Morgan Stanley, business owners often assume they can implement a defined benefit or cash…
Continue Reading Morgan Stanley Defined Benefit and Cash Balance Plans: The Ultimate Guide
Merrill Lynch, now part of Bank of America, offers a range of retirement plan solutions. Defined benefit and cash balance…
Continue Reading Merrill Lynch Defined Benefit and Cash Balance Plans: The Complete Guide
Adding life insurance to a cash balance plan can be a smart strategy. But every business owner who has used…
Continue Reading Exit Strategies for Life Insurance in Cash Balance Plans
Most PPLI policyholders spend enormous energy getting into their policy. Very few spend enough time thinking about how to get…
Continue Reading Private Placement Life Insurance Exit Strategies [Top 6]
If you are a sole proprietor with a retirement plan, there is one number that controls everything — and most…
Continue Reading What is ‘Deemed’ Compensation and Why is it Critical for Sole Proprietors
Business owners are often attracted to self-directed cash balance plans because they can invest in alternative assets like real estate,…
Continue Reading The Pitfalls of Self-Directed Cash Balance Plans
For self-employed professionals, choosing the right retirement plan is one of the most consequential financial decisions you can make. The…
Continue Reading Cash Balance Plans vs. SEP IRAs: A Comparison for the Self-Employed
Setting up a cash balance plan involves much more than choosing a contribution level and opening an investment account. Before…
Continue Reading Plan Document Requirements for Establishing a Cash Balance Plan
When most business owners evaluate a cash balance plan, they focus on contribution limits and tax deductions. Those are compelling…
Continue Reading The Portability Advantage of Cash Balance Plans
CPA firm partners are among the most financially sophisticated professionals in the country. Yet many of them are dramatically underfunding…
Continue Reading Cash Balance Plans for CPA Firms: Reducing Tax Liability While Building Wealth
A cash balance plan is one of the most powerful tax-advantaged retirement tools available to business owners and high-income professionals.…
Continue Reading Rolling Over a Cash Balance Plan to an IRA: Step-by-Step
When business owners explore cash balance plans, they often focus on contribution limits and tax savings. What many overlook is…
Continue Reading The Role of the Actuary in Cash Balance Plan Design
Many business owner seek to invest in real estate and private loans (among other assets) inside their defined benefit plans.…
Continue Reading 5 Downsides of Self-Directed Defined Benefit Plans
Defined benefit plans are complex enough when you only have one business entity. But what if you own multiple businesses?…
Continue Reading How to Structure Defined Benefit Plans With Multiple Businesses
Private placement life insurance allows investors to access a wide range of investment strategies. These investments grow tax-free within the…
Continue Reading Private Placement Life Insurance (PPLI) Investments: What Are Your Options?
Private placement life insurance illustrations help investors understand how the strategy works over time. These illustrations typically show premiums, cash…
Continue Reading Private Placement Life Insurance PDF: A Simple Illustration [Example]
Private placement life insurance is a powerful tool for high-net-worth estate planning. It combines tax-efficient investment growth with a life…
Private placement variable annuities, or PPVA, are tax-deferred investment vehicles designed for high-net-worth investors. They combine annuity structures with access…
Continue Reading PPVA: What Are Private Placement Variable Annuities?
Private placement life insurance offers tax-deferred growth within a life insurance structure. These benefits depend on strict compliance with IRS…
Continue Reading Private Placement Life Insurance Investor Control: How Much Can You Have?
Private placement variable annuity, or PPVA, is a tax-advantaged investment structure designed for high-net-worth individuals. It combines annuity features with…
Continue Reading Private Placement Variable Annuity: The Complete Guide to PPVA
Insurance dedicated funds, or IDFs, are specialized investment vehicles used within life insurance policies. They are commonly used in private…
Continue Reading Insurance Dedicated Funds (IDF): The Complete Guide for PPLI
Private placement life insurance is designed for high-net-worth individuals seeking tax-efficient investment growth. The structure combines life insurance with customized…
Continue Reading PPLI Minimum: What is the Lowest Premium I Can Fund?
Private placement life insurance offers tax-efficient investment growth within a life insurance structure. These benefits depend on strict compliance with…
Continue Reading What are the PPLI Investment Diversification Requirements?
Private placement life insurance, or PPLI, is a specialized insurance structure for high-net-worth individuals. It combines permanent life insurance with…
Continue Reading Private Placement Life Insurance (PPLI): Rules & Exceptions
A cash balance plan can be one of the most powerful retirement tools available to business owners, but understanding how…
Continue Reading 31% Cash Balance Plan Rule Table [2025 & 2026]
A cash balance plan can work well for owners with multiple income streams. However, the structure becomes more complex when…
Continue Reading Can You Use a Cash Balance Plan if Your Income Comes From Multiple Businesses?
Most business owners look at a cash balance plan illustration and jump straight to the biggest number on the page.…
Continue Reading How to Read a Cash Balance Plan Illustration [Step by Step]
Many business owners set up a solo cash balance plan expecting years of simple, predictable contributions. Then the business grows,…
Continue Reading When a Solo Cash Balance Plan Stops Being ‘Solo’
A solo cash balance plan can select many different interest crediting rates. This includes fixed, variable and even market-based. At…
Continue Reading Why We Don’t Recommend Market-Based Crediting for Solo Cash Balance Plans
Thanks to the SECURE Act 2.0, employer contributions can now be Roth. While this sounds like a big development, it…
Continue Reading Can Employer 401(k) Contributions be Roth? [Hint: Yes, But There’s Catch]
We know that physicians are excellent candidates for cash balance plans. They need all the tax deductions they can get.…
Continue Reading How To Structure Large Group Cash Balance Plans [Step by Step]
Defined benefit and cash balance plans offer a lot of customization. When hiring non-owner employees, employers can limit when new…
Continue Reading One & Two Year Eligibility Options for Defined Benefit Plans Explained
Cash balance plans offer large tax deductions, but they can be complex. There’s a lot of terminology that you must…
Continue Reading Cash Balance Plans: Why Your ‘Pay Credit’ Does Not Equal Your Contribution
It is very common for defined benefit plans to be accompanied by 401(k) plans. These 401(k)s will typically include both…
Continue Reading Why Your 401(k) Employee Deferral Must be Included on Your W2
You have a lot of flexibility when it comes to the timing of defined benefit or cash balance plan contributions.…
Continue Reading Why You Should Not Make Weekly or Monthly Contributions to a Defined Benefit Plan
Defined benefit and cash balance plans are excellent retirement structures. But what happens if you don’t fund or file for…
Continue Reading Defined Benefit Plans: What Happens When You Don’t Fund or File for a Year?
Defined benefit and cash balance plans allow for substantial tax deferred contributions. But did you know that the first year…
Continue Reading How to Calculate a ‘Deemed’ Wage for a Prior Service Defined Benefit Plan
A defined benefit (DB) or cash balance plan is one of the most powerful retirement and tax-planning tools available to…
Overfunded defined benefit plans can create a tax problem upon termination. However, very few clients are even aware of this…
Continue Reading Excise & Income Taxes on Overfunded Defined Benefit Plans: The Complete Guide
A “personal defined benefit plan” usually refers to a defined benefit plan designed primarily for one business owner. The appeal…
Continue Reading Personal Defined Benefit Plan Rules: The #1 Design
Vesting is one of the most important design features in a cash balance plan, but it is often misunderstood. Many…
Continue Reading Vesting for Cash Balance Plans: Cliff vs Graded
A cash balance plan is often described as a defined benefit plan that “looks like” a 401(k). The reason is…
Continue Reading Cash Balance Plan Hypothetical Account Balance: What is it?
Many business owners ask whether they can have two defined benefit plans at the same time. The short answer is…
Continue Reading Can I Have Two Defined Benefit Plans? Here are the IRS Rules
Most business owners hear “cash balance plan maximum benefit” and assume it’s a simple annual contribution limit. In reality, the…
Continue Reading Cash Balance Plan Maximum Benefit: How is it Calculated?
Defined benefit plans can deliver huge tax deductions. But annual allowable contributions can vary widely from year-to-year. Too many owners…
If you own multiple businesses, you may have been asked to sign a Joinder Agreement. If you control multiple entities,…
Continue Reading Joinder Agreements: What are they and why do I need one?
Business owners often ask whether they can roll IRA dollars into a profit-sharing plan and buy life insurance. You certainly…
You may have heard that when you contribute to a cash balance plan along with a 401(k) profit-sharing plan, your…
Continue Reading Why is Profit-Sharing Capped at 6% With a Cash Balance Plan?
A premium deposit account is a side account held at the insurer. You add money there to help pay future…
Continue Reading Premium Deposit Account: What is it and Benefits to Fund
The core concept is using qualified-plan dollars to buy permanent life insurance. The “tax-free” part usually means the life insurance…
Continue Reading Tax-Free Way to Turn $1 Million of Nvidia Stock into Life Insurance
Many clients are unsure who truly makes retirement plan contributions. The crucial issue is who sponsors the plan and claims…
Continue Reading Do Retirement Plan Contributions Come from My Personal or Business Bank Account?
Frontloading defined benefit or cash balance plans can make a lot of sense. However, there are a few pitfalls to…
Continue Reading Pitfalls of Using ‘Years of Service’ to Frontload a Defined Benefit Plan
Many business owners want large cash balance plan deductions but have relatively low W-2 compensation. At first glance, those goals…
Continue Reading How to Make a Large Cash Balance Plan Contribution with a Low W-2
Naming a trust as a retirement plan beneficiary is becoming more and more common. However, it comes with many pitfalls.…
Continue Reading Should a Revocable Trust be the Beneficiary of a 401(k) or IRA? Key Considerations
A cash balance plan is a type of defined benefit plan with account style features. It credits pay credits and…
Continue Reading Cash Balance Plan with Insurance: Ensuring the Plan Document Allows It
Defined benefit plans have tax advantages, but who manages them? Many parties play distinct roles in managing a defined benefit…
Continue Reading Who Manages a Defined Benefit Plan? Actuaries, TPAs, and Financial Advisors
When a cash balance plan is established, there is a pay credit formula that is used in the plan document.…
Continue Reading When to Use a Pay Credit Formula of 200% to 300% [Tips + Rules]
Tax drag is the reduction in investment returns caused by ongoing taxes. It occurs when earnings in a taxable account…
Continue Reading Tax Drag: How Does it Work with Traditional and Roth IRAs?
When married spouses each own and operate their own separate business entities, navigating retirement plan rules can become surprisingly complicated.…
Continue Reading Cash Balance Plan Rules When Two Spouses Own Separate Businesses
ETRADE offers a strong 401(k) platform known for its investment flexibility and straightforward fee structure. These features make ETRADE a…
Continue Reading How Business Owners Pair an E*TRADE 401(k) with a Cash Balance Plan
Many business owners look for retirement plan solutions that blend flexibility, tax efficiency, and strong investment support. Charles Schwab has…
Continue Reading Charles Schwab 401(k) + Cash Balance Plan Blueprint: Our #1 Strategy
Retirement planning for small business owners often requires a blend of flexibility, strong investment options, and advanced tax strategies. Vanguard…
Continue Reading Vanguard 401(k) + Cash Balance Plan Strategy for Business Owners
Many business owners and professionals look for retirement plan providers that offer strong investment platforms and administrative support. Fidelity is…
Continue Reading Fidelity Cash Balance Plan + 401(k) Combo: Is It a Good Option?
A cash balance plan is one of the most powerful retirement strategies for high-income business owners and professionals. It combines…
Continue Reading Setting up a Cash Balance Plan: A ‘How to’ Guide
Retirement plans are designed to help both business owners and employees save for the future in a tax-advantaged way. However,…
Continue Reading What is a Highly Compensated Employee (HCE) in Retirement Plans?
One of the most powerful retirement plan structures is a combination of a profit-sharing 401(k) and a cash balance plan.…
Continue Reading What is the Gateway Test? Cross-Testing Retirement Plans