Cash Balance 401(k) Combo's - Maximizing Contributions and Deductions

Many professionals (surgeons, attorneys, accountants, engineers, successful business owners) would like to put away more than the $54,500 that is allowed in 2009 for a 401(k) plan. With a Cash Balance 401(k) Combo, they might be able to shelter an additional $100,000 to $200,000 per partner or owner without increasing the cost for employees by a large percentage. Think of the employee cost not being worse that 7.5% of compensation plus about $1,000 - and it could be quite a bit less in the right circumstances. Many of these types of firms may already spend that much on contributions for employees in their 401(k) plan, so there may be no increase in costs.

Our TPA firm, Plan Design Consultants, Inc. can work with you to get illustrations for your clients.