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Kiplinger
Kiplinger
Business
Omar A. Morillo, CFP®, ChFC®, AIF®

Cash Balance Plans Aren't Gimmicks: Why High Earners Should Reconsider This Bona Fide Planning Tool

Wads of 100 dollar bills on yellow background.

The standard 401(k) playbook leaves high-income professionals and business owners with a planning gap that's larger than most realize. Cash balance plans, when used correctly, can help close it.

For most American workers, a 401(k) and an IRA cover the retirement bases. For successful professionals and business owners earning far above the median household income, those same vehicles may provide less retirement savings capacity and current-year tax efficiency than other qualified plan structures.

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