Welcome

A hybrid defined benefit plan that combines features of Defined Contribution and

Defined Benefit Plans.

• Annual compensation taken into account for benefit calculations is $285,000 (indexed for 2020).
•  Formula may be based on either a lump sum or an accrued benefit.
•  Contribution amount is based on actuarial assumptions and computations; consequently, an actuary must determine the plan deductible contribution limit.

• Like a defined benefit plan, there is a specified benefit at retirement.
•  Like a defined contribution plan, each participant has an account balance although it is hypothetical.
•  The employer must contribute an amount determined by an actuary.
•  Unlike defined benefit plans, cash balance plans typically offer a lump sum distribution option at retirement, termination of employment, death and disability.
•  Cash balance plan may be combined with a 401(k) profit sharing plan to enhance the overall plan design.