Enhance Employee Retention
What is a Cash Balance Plan?
A Cash Balance Plan is a type of defined benefit retirement plan that combines features of both traditional pension plans and defined contribution plans. Unlike traditional pensions, which promise a specific monthly benefit at retirement, Cash Balance Plans define the benefit in terms of a stated account balance. Each participant has a hypothetical account that grows annually through employer contributions and an interest credit, which can be a fixed rate or linked to an external index.

How Does It Work?
In a Cash Balance Plan, the employer credits a participant's account with a set percentage of their salary each year, along with an interest credit. This approach allows employees to see the growth of their retirement benefits over time, similar to defined contribution plans like 401(K)'s. However, the employer bears the investment risk, ensuring a predictable benefit at retirement.
Higher Contribution Limits
Cash Balance Plans often allow for larger annual contributions compared to 401(k) Plans, enabling accelerated retirement savings and enhanced tax deductability.
Predictable Benefits
The plan provides a clear benefit at retirement, offering financial security for employees.
Portability
Participants can roll over their account balances into other retirement accounts if they change employers.
Why Consider a Cash Balance Plan?
Maximize Contributions and Savings
Cash Balance Plans allow for much higher annual contributions compared to 401(k)s, enabling key employees and owners to accelerate their retirement savings.
Contributions are age-weighted, allowing older employees to save more as they approach retirement.Significant Tax Benefits
Employer contributions are tax-deductible, offering a substantial tax-saving opportunity for your business.
For high-income earners, contributions reduce taxable income, creating immediate financial advantages.Predictable Retirement Benefits
Unlike 401(K)'s, which depend on market performance, Cash Balance Plans provide a guaranteed growth rate, offering employees a secure and predictable retirement benefit.
Attract and Retain Top Talent
A cash balance plan is a standout benefit that demonstrates your commitment to employees’ long-term financial well-being. It’s an excellent tool for attracting and retaining high-performing professionals.
Ideal for Owners and High-Income Earners
Business owners and executives often face limitations with traditional retirement plans. Cash balance plans provide a solution for maximizing savings and preparing for a comfortable retirement.
The Advantages of a Cash Balance Plan
For Employers
- Significant tax savings and the ability to reward high-performing employees.
- A competitive edge in recruiting and retaining top talent.
- Predictable contributions and secure benefits, aligning with your financial strategy.
For Employees
- Guaranteed growth on their retirement savings for peace of mind.
- Accelerated savings opportunities for high-income earners.
- A robust and secure retirement benefit that complements other savings plans.

Why Choose NetWellth for Your Cash Balance Plan?
Customization to Fit Your Goals
We design cash balance plans tailored to your specific business structure, workforce demographics, and financial objectives.
Seamless Integration with Existing Plans
Our cash balance plans work alongside your existing 401(k) or profit sharing plans, creating a comprehensive retirement benefits package for your team.
Transparent and Efficient Administration
Our no-kickback, no-hidden-fee model ensures every dollar of your contribution goes toward building value for your employees. Our tech-enabled platform streamlines plan management, compliance, and reporting, saving you time and resources.
Expert Support Every Step of the Way
From plan design to implementation and ongoing management, our team of experts ensures your cash balance plan operates smoothly and efficiently.
Employee Engagement and Education
We provide personalized education resources to help employees understand the value of their cash balance plan, driving appreciation and loyalty.

Is a Cash Balance Plan Right for You?
- Cash balance plans are an excellent choice for businesses looking to:
- Provide meaningful retirement benefits to high-income earners and key employees.
- Maximize tax savings for owners and the company.
- Offer a predictable and secure retirement benefit that stands out in the marketplace.