How long does it take to set up a cash balance plan?

Once you complete our setup paperwork, plan documents are typically ready within 5–10 business days.

What should I tell my CPA?

Most CPAs are familiar with qualified plans but may not know the nuances of cash balance plans. Key points to share:

1. These are qualified, IRS-approved plans—send your CPA the plan documents.

2. Contributions are deductible through your tax filing deadline, including extensions.

3. Contributions are reported differently depending on your entity type. We also provide a detailed guide your CPA can reference for tax reporting.

What’s involved in setting up a Safe Harbor 401(k)?

You’ll notify employees of your match (usually 3%), select a custodian/recordkeeper, and coordinate payroll deductions. Plan setup and coordination generally take about one month.

Can I use a market rate of return instead of a fixed 4%?

Yes, but it’s not recommended. Market rates can create funding volatility and increase required contributions after low-return years, and decrease required contributions after high return years.

Are there tax credits for plan costs?

Yes — the IRS offers a startup credit of $250 per eligible employee, up to $5,000 per year, for the first three years of the plan. You can claim it on Form 8881 with your business tax return. Note: Solo plans don’t qualify since they lack eligible employees.

What documents will I receive?

All plan documents are securely stored, including:

• Adoption Agreement

• Summary Plan Description

• Plan Document & IRS Approval Letter

• Participant Highlights

• Beneficiary Forms

• Plan EIN

Is the plan trust revocable or irrevocable?

Neither — a cash balance plan trust is tied to your business entity and functions under retirement plan law, not personal trust law.

What’s the setup deadline?

Plans must be adopted by your business tax filing deadline (including extensions) for the prior tax year. For example, a 2024 plan can be set up as late as September 15, 2025 for a calendar-year business. The plan must also be funded by that date.

What is a beneficiary form?

A beneficiary form designates who receives your plan benefits if you pass away. It asks for your beneficiary’s name, relationship, and percentage share, and sometimes requires notarization.

Why is the beneficiary form important?

Without one, the plan’s default rules apply—usually the spouse first, then the estate. An updated form ensures benefits go directly to your intended recipient and avoids probate delays.

When should I update my beneficiary form?

Update it after any major life change (marriage, divorce, birth, etc.). If you marry, your spouse automatically becomes the primary beneficiary unless they consent in writing to another designation.

Do you manage the investments in the cash balance plan?

Yes. We serve as the investment advisor for your plan and coordinate with the third-party administrator (TPA) to handle funding and compliance. You’ll typically act as the plan trustee, with responsibility for overseeing the plan’s assets.