Why a Solo(cb)?
Cash Balance plans, while very complex by design, are very ‘user-friendly; they just work:
They are easy to use in planning:
- Financial advisors: tax planning, risk management, and transition planning
- Accountants: deduction planning and impact on tax liability
They are easy to understand and value:
- Clients have clear and understandable funding targets
- Businesses with more than one owner are able to custom-craft their contribution levels
- Clients are able to understand with clarity their account value: what you see is what you get
They are easy to operate:
- Put money in
- Pay account value out
- No surprises or confusion when paid out of the plan
Income tax and an early withdrawal penalty may apply for individuals under age 59 ½ at the time of distribution. Individual results will vary based on plan design, census data, earnings history, actuarial calculations, and governing regulations. Because Solo(cb) is a type of a defined benefit plan, minimum funding rules apply. Failure to meet minimum funding requirements leads to excise tax until funding requirements are met.
What is a Solo(cb)?
Who is a candidate?
When does it make sense?
How does it compare?
What are typical occupations?
See Case Studies
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