Cash Balance Plans for Business Owners & High‑Income Professionals
Elevate your retirement strategy while lowering your tax bill.
For business owners, partners, and high‑income professionals, a cash balance plan can be a game‑changer. This advanced retirement strategy allows for substantially higher tax‑deductible contributions than a 401(k) alone, helping you fast‑track retirement savings while meaningfully reducing your annual tax burden. At Eight Peaks Wealth Management, we specialize in integrating cash balance plans into a cohesive wealth management strategy that aligns with your investments, business goals, and long‑term financial independence.
What Is a Cash Balance Plan?
A cash balance plan is a specialized defined benefit plan that combines features of a pension with the portability and account clarity of a defined contribution plan.
Key differences:
Contributions are determined by a set formula, often based on age, compensation, and desired retirement target.
Annual limits far exceed those of 401(k) or IRA plans — often reaching $100,000 to $300,000 in deductible contributions for owners.
Plan assets grow tax‑deferred and can be rolled into an IRA when the plan ends.
Who Can Benefit Most
Professional service firms (medical, legal, engineering)
Successful entrepreneurs with steady business income
Partnerships wanting both tax efficiency and a high‑value employee benefit
Why High‑Earners Love This Strategy
Bigger Tax Breaks – Reduce taxable income by six figures annually.
Accelerated Wealth Building – Perfect for late‑career catch‑up contributions.
Integrates with 401(k) – Layer both plans for maximum savings.
Flexible Investments – Options for conservative or growth‑oriented portfolios.
Our Approach
Evaluate – Review your business, tax position, and retirement goals.
Design – Structure the plan to optimize contributions and tax benefits.
Integrate – Align investments and funding with your broader wealth plan.
Manage – Coordinate with TPAs and CPAs to ensure compliance and performance.
Considerations Before You Start
Best for owners with consistent profits and stable cash flow.
Typically maintained for at least 3–5 years.
Requires annual funding commitments and professional administration.
Administrative and compliance costs are higher than a stand‑alone 401(k).
Get Started
If you’re ready to cut taxes and grow your retirement wealth faster, it’s time to explore a cash balance plan.