CASH BALANCE PLANS

Actuarial Services –> Pension Plans – Cash Balance Plans – Cross Testing – GASB 45 & OPEB – FASB Retiree Medical

CASH BALANCE PLANS are defined benefit plans, with the look and feel of defined contribution (401(k)-style) plans. They need all the same actuarial services as traditional pension plans (annual valuations, government filings etc.) – and then some.

Above all, cash balance plans need to be designed well. This is especially true for professional firms, where big tax deductions and stable funding are a primary concern. We’ve worked with cash balance plans for over 20 years, and can help you find the optimal solution for your business.

We’ll work with you to design a plan that meets your objectives while complying with all of the IRS rules: §401(a)(4) nondiscrimination testing (usually cross testing),  §401(a)(26) minimum coverage testing (the 40% / 50-employee “meaningful benefit” rule), and §411(b) accrual rule testing. It can look intimidating, but we love this stuff and will take care of the details.

For more info on cash balance plans, see the Cash Balance Plans overview.  Or, call or email us with your questions.

© 2011 Northern Consulting Actuaries, Inc. dba Van Iwaarden Associates.