Small Business Owners: Realize Potential Tax Savings up to $400K!
If you’re paying six figures in taxes annually and haven’t evaluated the potential benefits of a Cash Balance Plan, you may be leaving hundreds of thousands of dollars on the table.
Add Cash Balance Plan to Your Employee Benefits. YOU realize:
>$100K–$400K+ annual tax deductions (case dependent)
>>Accelerated Retirement Savings (often 3-5x traditional limits)
>>>Creditor Protection (Employee Retirement Income Security Act)
>>>>Potential for Tax-Deferred Compounding
Miser Wealth Partners are national experts on Cash Balance Plans and can guide you through all the nuances of this powerful financial tool. Most business owners we meet with are overpaying in taxes, not because they’re doing something wrong but because they weren’t made aware of what’s possible with a Cash Balance Plan.
What if you could legally redirect SIX FIGURES of your tax bill back into your own retirement account?
That’s the power of a Cash Balance Plan!
Request an Informal Phone Call with a Miser Tax Advisor Today. Click Button NOW.
Samuel H. Tutko, Vice President of Tax Planning delights in the amazing collaborative effort of a team that truly wishes to see clients reach their goals of financial security.
How does a Cash Balance Plan work?
These specialized pension plans combine the high contribution limits of the two general types of pension plans – defined benefit plans and defined contribution plans (such as a 401(k) plan). This combination offers a “hybrid” means for enhanced financial security. Cash Balance Plans allow business owners to contribute significantly more than a traditional 401(k), which often comes with the added benefit of large, immediate tax deductions. In fact, think of a Cash Balance Plan as a 401(k) on steroids.
Cash Balance Plans are rarely standalone financial strategies. At Miser Wealth Partners, we typically integrate them with 401(k)/profit sharing plans, defined benefit and cash balance combo structures, advanced tax planning, life insurance, and estate strategies, all to maximize the tax savings.
Who are ideal candidates for Cash Balance Plans?
By design, Cash Balance Plans aren’t for everyone. They’re generally most suited for business owners earning $300,000+ annually, particularly of S corps, LLCs, or closely help C corps. Ideal candidates include medical professionals (such as doctors, surgeons, dentists, and specialists) and successful real estate investors and agents.
An ideal income range for these plans would be $400,000+. Though not for everyone, Cash Balance Plans are extremely powerful when structured correctly. If you’re a professional wanting to reduce taxes while accelerating retirement savings, Cash Balance Plans are certainly worth exploring.
The team at Miser is unique in its capability of assembling Cash Balance Plans for its clients. Miser consists of a team of talented professionals that can integrate the Actual Tax, Investment Insurance and Corporate Benefits Programs necessary to deliver the best cash balance outcomes possible.
If so, let’s talk! Schedule your Informal Phone Call with Miser Tax Advisors Today!
Our team is ready to review a few simple details about your personal tax strategy, and in a few minutes will be able to determine if a Cash Balance Plan could be your ticket to substantial tax savings.
How does a Cash Balance Plan differ from my 401(k)?
A traditional 401(k) typically caps out around $66,000–$73,000 depending on its structure. A Cash Balance Plan offers more flexibility by allowing you to contribute two to five times that amount that can range from $100,000 to $400,000+, creating larger tax deductions, faster retirement accumulation, and more control over long-term planning. Cash Balance Plans are best for high-income business owners, while 401(k)s are better suited for employees.
What kind of tax savings can I expect with a Cash Balance Plan?
Every situation is different, but many of your clients are able to reduce their taxable income up to six figures annually with Cash Balance Plans. For example, a $250,000 contribution could potentially generate $80,000–$120,000 in tax savings depending on your bracket. We’ll discuss a personalized plan and discuss your specific numbers during your consultation.
Experience the Miser Difference with your Cash Balance Plans.
These plans can get complex, so it’s important to choose a knowledgeable partner that instills trust. Our team is going to guide you through this process carefully and thoughtfully. In our experience, most firms look at this strategy as a standalone approach. That’s not how we operate.
Our expert team integrates tax strategies, retirement planning, estate considerations, and insurance design, all elements that are required for the success of your Cash Balance Plan. Miser Wealth Partners is among the rare .5% of firms in the United States that have this capability ALL under one roof. That is the Miser Difference.
Can I still work with my current financial advisor, CPA, or attorney if I choose Miser Wealth Partners to manage my Cash Balance Plan?
You can absolutely keep working with your current professionals. Though the Miser professionals will create, organize and manage your entire Cash Balance Plan, we coordinate with your existing team to ensure the most successful execution.
Get started with a Cash Balance Plan today with the help of Miser Wealth Partners.
If you’re consistently writing large checks to the IRS and feel like there should be a more efficient way to structure things, you’re probably right. The only way to know for sure is to take a closer look, and that’s where Miser Wealth Partners rises to the challenge. All you have to do schedule a free 15 to 20-minute discovery call with us to get started at no obligation. We’ll take it from there. Click HERE to schedule today.
Frequently Asked Questions about Cash Balance Plans:
What makes a Cash Balance Plan different from a 401(k) or a SEP-IRA?
A Cash Balance Plan is a type of defined benefit plan, which allows for much larger, age-based contributions than defined contribution plans like 401(k)s and SEP-IRAs, which both have an annual contribution limit. A Cash Balance Plan is designed to work alongside your existing pension plan to maximize your tax deductions.
How much does it cost to set up a Cash Balance Plan?
Cash Balance Plans include setup and annual administration fees, which are typically a small fraction of the tax savings you’ll receive. These fees are also tax-deductible. We’ll make sure you know exactly what amounts to expect based on your situation.
What happens if my income changes?
These plans have built-in flexibility, so you can adjust your contributions within actuarial ranges to match your business’s cash flow. This helps ensure you stay compliant even in leaner financial years.
How are funds from a Cash Balance Plan invested?
At Miser Wealth Partners, your plan’s assets are managed by our in-house investment team. We meticulously design a portfolio to target the plan’s required crediting rate while aligning with your personal long-term wealth goals. This integrated approach ensures seamless management of your tax-deferred assets.
What happens to the funds when I retire?
You have several options here. Our Miser Wealth Partners legal and investment teams coordinate with each other to ensure a seamless transition, whether you choose to roll the funds into an IRA, execute a strategic Roth conversion, or structure tax-efficient distributions as part of your broader estate plan.
Do I have to offer a Cash Balance Plan to all my employees?
In general, no you do not have to offer every employee the opportunity to participate in your company’s Cash Balance Plan benefit. However, this is considered a defined benefit plan, so if you do adopt one, you must cover the employees that meet the plan’s eligibility rules and you must fund the promised benefits as outlined in your company’s specific plan. Remember, you usually offer the plan to more than just the owner.
Is there a federal law that governs these plans?
Yes. These laws include the Employee Retirement Income Security Act (ERISA), the Age Discrimination in Employment Act (ADEA), and the Internal Revenue Code (IRC). All provide certain protections for the employee benefits of participants in private sector pension plans.