BizSugar.com › Taxes › Cash Balance Retirement Plan: The Solution to Accelerate Savings, Reduce Taxes and More

Although April 15th was weeks ago, the impact of paying income taxes may still have a lingering affect for many people.

Many of these people are business owners or high income professionals who find themselves with a retirement plan dilemma. They have high earnings but inadequate retirement savings, due to limits on 401(k) tax-deferred savings and also because they have invested heavily in building their business or professional service practice.

If you happen to find yourself in this situation, and would also like a significant tax deduction, adding a Cash Balance Plan may be the perfect solution. Cash Balance Plans provide participants with an annual pre-tax contribution limit of up to $275,000, typically double or even triple what is allowed in a 401(k) profit sharing plan ($59,000 if age 50 or older).