Cash Balance Plan for Self-Employed Professionals

A cash balance plan can be an effective retirement strategy for self-employed professionals and business owners who want to make larger tax-deductible contributions while building long-term retirement savings. This type of defined benefit plan combines features of traditional pension plans with the familiar account-balance approach of a 401(k). Contributions receive tax-deferred growth and may provide significant retirement benefits. A cash balance plan can also be paired with a 401(k) to potentially increase overall retirement contributions.