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How small business owners can use Cash Balance plans as a Defined Benefit retirement option Thumbnail

How small business owners can use Cash Balance plans as a Defined Benefit retirement option

Download the episode on Spotify here / Apple here / YouTube here

Josh & Jay welcome Will Steih, Managing Director or Prime Capital Investment Advisor’s Tennessee office, to the studio for Chapter 3 of 5 in our Business Owner Strategies & Solutions (B.O.S.S). Series, a discussion about Defined Benefit & Cash Balance Plans. We discuss why a business owner would consider a Defined Benefit Plan and how a business owner with a fully funded 401k can layer a Cash Balance Plan on top to provide additional future retirement income. We also discuss how a Defined Benefit / Cash Balance Plan affects a business owner’s overall tax strategy & tax efficiency.

Key Takeaways:

  • There has been a resurgence in Defined Benefit Plans in businesses with up to 50 employees
  • Defined Benefit Plans tend to appeal to business owners with an appetite for additional savings above their 401k contributions
  • A Defined Benefit Plan can be used to fund retirement income needs above qualified plan contribution limits
  • A Defined Benefit Plan is generally set up to be more conservative than a typical qualified retirement plan

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Gulf Coast Financial Advisors

Prime Capital Investment Advisors 

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Financial Fitness for Life

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