Cash Balance Contribution

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DWC |

“Cover Me” with the Pension Benefit Guaranty Corporation

Welcome back to Cash Balance Corner (CBC) after a brief summer hiatus. We thought you deserved a break after all the math we threw at you in the last few entries. This is the 15th installment for ...
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DWC |

Designing Your 401(k) Plan for Combined Testing

Thousands of 401(k) plans are designed each year to promote savings in the most cost-effective manner. Most are established as stand-alone plans and will remain that way for their entire existence. ...
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DWC |

Nondiscriminatory Benefit Amounts - Treat Me Right

Outside the complex world of qualified plans, the term “nondiscrimination” can take on many different meanings based on many different points of view. Fortunately, in the qualified plan world, the ...
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DWC |

Nondiscrimination Testing Creates Career Opportunites

Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various ...
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DWC |

Anticipating a New Hire - You Might Change Your Mind

Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various ...
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DWC |

Adding an Employee to Your Cash Balance Plan? You Should be Thinking This Article is "Just What I Needed"

Sponsoring a retirement plan can provide significant benefits to a company (and its participants). But with great benefits comes great responsibility…responsibility to follow all of the various ...
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DWC |

Cash Balance Compliance: "Takin' Care of Business"

Wow! We have covered a lot of ground over the last few entries, learning about how cash balance benefits are earned and funded. So far, our plan sponsor Robert Smith, Inc. has dealt with the ...
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DWC |

How to "Push It" (But Not Too Much) by Prefunding Cash Balance Plans

Thanks to the last few CB Corner entries, we now know that our plan sponsor Robert Smith, Inc. has a wide range of options when it comes to making contributions to its cash balance plan.
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DWC |

Maximum Contributions: Additional "Opportunities"

In our last episode, we mentioned we would move on to developing an ideal funding policy. Before doing so, we realized there is one more aspect of the maximum allowable contribution we need to cover ...
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DWC |

Maximum Contributions: "Everybody Wants Some"

Let’s do a little recap. In the last two installments, we discussed what Robert is required to contribute (the Minimum) to his cash balance plan and what he should contribute (the Recommended). Now, ...
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DWC |

"Complete Control" with Recommended Contributions

Congratulations on making it through our last installment and to this one. We typically do not like to get that deep into the weeds, but hey, this is actuarial stuff after all, and you can’t always ...
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DWC |

One and One Makes Five: Calculating the Minimum Required Contribution

In our last episode, we showed how the cash balance benefit for our owner, Robert Smith, accumulates over time. In our Perfect World (no offense Huey!), Robert contributes exactly $100,000 to the ...
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DWC |

Cash Balance Contributions: Definitely Not "Money for Nothing"

In our last installment, we took a look at the different ways to define the contribution credits in a cash balance plan. For Robert Smith, the owner and only employee of Robert Smith, Inc., the ...
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DWC |

Just Can't Get Enough...Savings from your 401(k) Plan

Now that we know the basics, we can apply our knowledge to (almost) real life scenarios. We will follow our fictitious company: Robert Smith, Inc., an S-corporation with no employees other than the ...
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DWC |

Cash Balance Plans 101

You are currently maximizing the contributions to your 401(k) profit sharing plan. While this level of savings is beneficial, you still want to be able to save more, plus you are looking for ...
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DWC |

Cash Balance Chart

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