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Next level wealth savings tax-free
Learn how a Cash Balance plan might be a perfect fit
Surpass regular 401k
plan limits
Tax-deferred growth
applicable
Tax-deductions on
contributions
Works well for late
retirement plan savings
Unrivalled benefit for
top employees
Surpass regular 401k
plan limits
Tax-deductions on
contributions
Unrivalled benefit for
top employees
Tax-deferred growth
applicable
Works well for late
retirement plan savings
Key facts
What are TPG Cash Balance Plans?
Who’s it for?
If you are a high-income earner, such as a doctor, lawyer, or other business owner, then a Cash Balance Plan can offer you and your company a powerful way to build significant retirement savings, while also reducing your taxes when making contributions.
High Limits
Cash Balance Plans offer a powerful way to build significant retirement savings, above and beyond a 401k plan. Depending on age, income, and other factors, plans can allow up to $383,000 per participant in 2025.
Tax Deduction
Contributions can be used as tax deductions for the relevant plan year. This helps lower corporate taxable income now, especially when income could lead to the highest tax brackets.
Retirement
The cost of retirement can be significant, and many have yet to come close to saving enough money to cover it. The Cash Balance Plan allows for greater contributions than a standard 401k plan, giving you the ability to save more sooner, or to catch up on lost
time, especially for those that have the resources only available to them later in life due to spending time/money on education, business startup, credentials, etc.
Tax Deferral
The plan also defers taxes on growth (gains/dividends/interest) over time. This allows
the plan to utilize the benefit of compounding with a combination of contributions each year and any performance gains the plan generates over time. Taxes are only applicable when withdrawing funds from the plan.
Who’s it for?
If you are a high-income earner, such as a doctor, lawyer, or other business owner, then
a Cash Balance Plan can offer you and your company a powerful way to build
significant retirement savings, while also reducing your taxes when making
contributions.
High Limits
Cash Balance Plans offer a powerful way to build significant retirement savings, above
and beyond a 401k plan. Depending on age, income, and other factors, plans can allow
up to $383,000 per participant in 2025.
Tax Deduction
Contributions can be used as tax deductions for the relevant plan year. This helps lower
corporate taxable income now, especially when income could lead to the highest tax
brackets.
Retirement
The cost of retirement can be significant, and many have yet to come close to saving
enough money to cover it. The Cash Balance Plan allows for greater contributions than
a standard 401k plan, giving you the ability to save more sooner, or to catch up on lost
time, especially for those that have the resources only available to them later in life due
to spending time/money on education, business startup, credentials, etc.
Tax Deferral
The plan also defers taxes on growth (gains/dividends/interest) over time. This allows
the plan to utilize the benefit of compounding with a combination of contributions each
year and any performance gains the plan generates over time. Taxes are only
applicable when withdrawing funds from the plan.
Let’s compare
Why Cash Balance Plans Can be Better
It’s an Upgrade!
Retirement is expensive, so finding the most efficient way to save for it is to use the tools that are available to you. A 401k plan is a great way to save for retirement, but it may not be enough to make up the difference you need, whether you simply want a larger nest egg or need to make up for lost time. A Cash Balance Plan, together with or separate to a 401k plan, can help make up that gap as you can contribute significantly
more on an annual basis.
Contribution Limits
It’s an Upgrade!
Retirement is expensive, so finding the most efficient way to save for it is to use the
tools that are available to you. A 401k plan is a great way to save for retirement, but it
may not be enough to make up the difference you need, whether you simply want a
larger nest egg or need to make up for lost time. A Cash Balance Plan, together with or
separate to a 401k plan, can help make up that gap as you can contribute significantly
more on an annual basis.
Contribution Limits
People trust us
Why The Pacific Group?
since
Long-Term Experience
The Pacific Group was established in 2003, and our experts have over 30+ years of combined experience as financial advisors.
CEO OF TPG
Get to Know Us
Who is The Pacific Group? We are a highly knowledgeable and experienced team that works with highly successful and influential individuals and companies. We’d love to help you achieve your goals!
Customer Success
We have worked with thousands of clients since our inception, both on the individual and corporate side, including highly successful individuals, companies, and employees. We strive to ensure your plans and goals are successfully achieved. You could be the next success story!
since
Long-Term Experience
The Pacific Group was established in 2003, and our experts have over 30+ years of combined experience as financial advisors.
CEO OF TPG
Get to Know Us
Who is The Pacific Group? We are a highly knowledgeable and experienced team that
works with highly successful and influential individuals and companies. We’d love to
help you achieve your goals!
Customer Success
We have worked with thousands of clients since our inception, both on the individual and corporate side, including highly successful individuals, companies, and employees.
We strive to ensure your plans and goals are successfully achieved. You could be the next success story!
Let’s Connect
Call us or send an email to us.
We respond the quickest on Weekdays from 9:00AM to 5:00PM.
Call us or send an email to us.
We respond the quickest on Weekdays from 9:00AM to 5:00PM.
FAQ
More questions?
How much do I need to earn to use a Cash Balance Plan?
The answer will vary depending on numerous variables:
Do you have significant excess business income after taking into consideration expenses? Do you already have a 401k plan, and if so, are you maximizing the contributions in it? The maximum compensation amount that can be used towards the contribution calculation per individual is $350,000 in 2025 (per the IRS).
How do you handle contributions?
After the plan is established under our management, the account will be opened with Charles Schwab as the custodian (where the plan assets are held). All funding will go to Charles Schwab, and we manage the investments held inside the plan at Charles Schwab based on your risk tolerance.
Does a Cash Balance Plan replace a 401k Plan?
It varies. More often than not, a Cash Balance Plan is added on top of a 401k plan because you and the respective company prefer to put more cash into retirement plans than the maximum a 401k plan can receive. But, there are instances where Cash Balance Plans are utilized alone without a 401k plan. Let’s discuss what works best for you. Please reach out to us at the contact information below.
What are the vesting periods on Cash Balance Plans?
Like 401k Plans, Cash Balance Plans can have different vesting schedules based on your choosing. They can have immediate vesting, cliff vesting (i.e. after 2 years, 100% vested), or a percentage per year (i.e. 6-year vesting schedule – 0%, 20%, 40%, 60%, 80%, 100%). There are numerous reasons to choose a different option, and we can help you think through that. Please reach out to us at the contact information below.
