FAQs
Process & Timelines
When is the deadline to fund a cash balance plan?
You can fund your plan up to the date your tax return is filed (including extensions, typically by September 15). This allows you to deduct the contribution on your prior year’s tax return.
What is a “pooled” investment account?
Cash balance plans use one pooled investment account for all participants, rather than individual accounts. The plan’s total funding is calculated based on this shared account.
What does 3-year vesting mean?
Participants become 100% vested after three years of service (“cliff vesting”). Leaving before that forfeits employer contributions, which offset future funding. If the plan terminates, all accounts become fully vested.
Do your fees include actuary services?
Yes. All actuarial services are included in our annual administration fees—no separate actuary is needed.
What’s included in annual administration?
Each year, we handle:
Actuarial certification of contributions
Compliance testing (IRS, DOL, ERISA)
Benefit statements and valuation reports
Form 5500 filing
Coordination with other plans for non-discrimination testing
Invoices for annual administration are sent each April for the prior year.
Why do you need contribution deposit dates?
Deposit dates are required for accurate actuarial calculations and IRS Form 5500 reporting. The fewer deposits you make, the easier it is to track and reconcile contributions.
How are leased employees treated?
If a worker from a staffing firm is under your company’s control (e.g., long-term, supervised, full-time), they may count as your employee and must be included in your retirement plan.
Can multiple companies participate in one plan?
Yes. Multiple businesses can be included under one plan, but each entity must make its own contribution and deduct it on its own tax return.
What is Schedule SB?
Schedule SB is filed with Form 5500 and prepared by your plan’s actuary. It reports your plan’s funding status, assets, liabilities, and compliance details to the IRS and Department of Labor.
Plan Takeovers
I’m acquiring a business with an existing cash balance plan. What are my options?
If the business you’re acquiring already has a cash balance plan, you have three choices:
Keep the plan as is and continue working with the existing third-party administrator (TPA).
Keep the plan but have Oakwood Summit or one of our TPAs take over administration.
Terminate the plan and distribute participant funds. Be aware that termination requires all participants to become fully vested, and you may be responsible for a final contribution. Always consult with the plan administrator before proceeding.
I’d like Oakwood Summit to take over plan administration. What do you need?
To assume administration, please provide:
Plan Adoption Agreement and amendments
Summary Plan Description (if available)
Actuarial valuations (last two years)
IRS Determination Letter (if available)
Form 5500 filings (last two years)
Year-end asset statements (last two years)
Current employee census
Two years of employee compensation history
Additional documents may be requested if needed.
Billing
How is annual administration billed?
Annual administration invoices are issued each April for the prior plan year (e.g., April 2025 billing for 2024 administration). Payment is due within 45 days. Late fees of $50/month apply beginning June 1, and payment must be received by July 31 if you need a Form 5500 extension.
Setup fees are billed upfront when plan documents are drafted. If your plan is established for a prior year, both setup and administration fees are billed together.
Annual administration includes actuarial certification, Form 5500 filing, plan consulting, and compliance reporting.
Can I wait to pay until my tax return is filed?
No. We begin administration work (including actuarial calculations) each spring, before tax deadlines. Payment is required before work begins. Exceptions may be made for special circumstances (e.g., illness or family emergencies).
Can I pay by wire or ACH?
Yes. You may pay from personal/business funds. Contact our billing department for wire or ACH instructions.
