Cash Balance Plans For Small Business Owners

Retirement plan contributions have been the most straightforward way for a high-income business owner to defer income taxes. While cash balance pension plans have steadily increased in popularity since 2010, the 2019 SECURE Act moved the deadline to the company’s tax filing deadline to implement a cash balance plan for the previous year. This gave business owners with steady profits extra time to evaluate their options. If you are a business owner who has consistently maxed out your 401(k) deferrals and looking for one last way to lower your 2022 tax burden, you won’t want to miss this one!