Carry Learning Center

If you make mid to high six-figures per year, the contribution limits of a 401k or Solo 401k might not be enough of a tax deduction. That’s where a cash balance plan can help. While they can be more complex to set up and maintain, the size of benefits are unmatched by defined contribution plans [...]

You may already be aware of defined contribution plans like the 401k, IRA, and Solo 401k. Defined contribution plans have their contribution limits defined each year. The IRS states the maximum amount you can put in and once you reach the limits, you cannot contribute anything else. Defined benefit plans (also known as pension plans or [...]

Cash balance plans are a type of defined benefit plan, different from defined contribution plans, and have no fixed annual contribution limits. Rather than the contribution limit being defined, the end balance or how much you would have in your account by retirement age, is predetermined. How much you can contribute to the account on [...]

Cash balance plans have straightforward deadlines to follow. The deadline for opening your plan and making contributions is the same, due on the date your business taxes are due (including deadlines). Partnerships and S corporations who follow the calendar year are required to make their contribution in full by March 15, 2025 for the 2024 [...]