Cash Balance plans for small business owners

For high-income business owners, a Cash Balance Plan can open up significantly higher annual funding than 401(k)s, SEPs, and IRAs allow on their own, often $100,000 to $400,000 more per year. The result: substantial tax savings and accelerated, creditor-protected wealth accumulation.

Request an Illustration Estimate Tax Deduction

Estimates only. Not tax or legal advice.

A smiling café owner in an apron stands in the doorway of her own shop

Most businesses stop at the 401(k) or SEP IRA

For high-income owners, that often leaves the largest piece of the retirement puzzle on the table.

The reason isn't always eligibility. It's awareness and access to a well designed Cash Balance Plan.

At CBC, we are here to help close that gap.

Example · A 52-year-old owner · 2026 Plan Year
$320,000
Total annual contribution
401(k) deferrals $32,500
Profit-sharing / employer contribution $47,500
Cash balance $240,000
Current-year tax savings $124,800

Assumes a 40% combined tax rate; excludes the $8,000 Roth catch-up.

Max cash balance contribution by age

Annually, over and above a 401(k) and profit share. Age is the single largest driver: the shorter the runway to retirement, the more can be funded.

$0 $100K $200K $300K $400K $500K Age 35 to 39: $104,000 to $127,000 $104K–$127K Age 40 to 44: $133,000 to $162,000 $133K–$162K Age 45 to 49: $171,000 to $207,000 $171K–$207K Age 50 to 54: $218,000 to $265,000 $218K–$265K Age 55 to 70: $278,000 to $473,000 $278K–$473K AGE 35–39 AGE 40–44 AGE 45–49 AGE 50–54 AGE 55+

Swipe to see the full chart

Youngest age in band Oldest age in band
Annual limits nearly triple between age 35 and age 55.

Estimates only.

How the process works

We coordinate the process so the advisor, the CPA, and the owner can each focus on what they do best.

A consultant reviews plan documents with a business-owner couple in a bright office

1. Initial review

A few details about the business, its employees, and the plan goals tell us whether a cash balance plan is worth pursuing.

2. Custom illustration

Our actuaries model contribution ranges and design options for the business. Free and non-binding.

3. Strategy and implementation

We review the results together, answer questions, and adjust the design. If it's a fit, we handle implementation with the advisor and CPA.

4. Ongoing administration and support

Annual valuations, compliance, filings, and coordination, so the plan stays on track.

What makes a good candidate?

Strong signals

  • High, stable income with excess cash flow
  • An owner or partner group that is older, with higher compensation, than most of the staff
  • A 401(k), SEP IRA, or SIMPLE IRA in place, but contribution limits are not enough or already maxed out
  • A real appetite for reducing current taxable income
  • Comfort funding consistently for at least three to five years

Usually not a fit

  • Income that swings sharply year to year (contributions are generally required once the plan is adopted)
  • Cash flow that needs to go back into the business now
  • A young owner relative to a large or older staff, which narrows the advantage considerably
  • Reluctance to fund benefits for staff
  • An expected sale or wind-down in the near term

We do that analysis for free, in a custom actuarial illustration, before any commitment. We'll tell you when it's not a fit as quickly as we'll tell you it is.

We'll meet you where you are

Request an Illustration Verified figures from the employee census, prepared by our actuaries.* → Schedule a Meeting An intro call or education session with a specialist. →

*Illustrations are complimentary and non-binding.

A team of professionals whose expertise and sole focus is Cash Balance plan design, consultation, and administration.

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