A hybrid plan with the feel of a defined contribution plan and the high funding limits of a defined benefit plan.

A cash balance plan is a form of defined benefit plan whose level of employer funding can be custom-tailored for each owner, employee, or group of employees. Cash balance plans can also generate significant tax savings which offset the overall cost of the plan. Alerus consultants can help review your current plan structure and recommend options to to boost retirement contributions and reduce taxes.

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  • Cash balance plans usually work best when designed with a companion 401(k)/profit sharing plan.
  • Participant statements are easy to understand since they resemble a traditional profit sharing or defined contribution statement.
  • Distributions can be rolled into an IRA or another qualified retirement plan such as a 401(k) plan.