Nov 19, 2015
Amid all the talk of pension plans' demise, one type of
defined-benefit plan is growing fast. Cash Balance Plans are
gaining popularity among business owners and medical practitioners
who are behind on retirement savings.
Kiplingers reports that many business owners are turning to these
plans to turbocharge their retirement savings. Cash-balance plans
have generous contribution limits that increase with age. People 60
and older can sock away well over $200,000 TO $300,000 annually in
pretax contributions. In 401(k)s, total employer and employee
contributions for those 50 and older are limited to only $57,500.
Steve and Sinclair review the fundamentals.