How are my cash balance plan contributions determined?

Your contributions are determined by our actuary. It depends on your age and W2 income (or business profit if a sole proprietor). For years subsequent to plan set up, you will typically be given a range for you to contribute. You would decide the amount to pay and let us know.

If you choose to pay on the low end it could result in a slightly higher range in following years. Of course, if you paid on the higher end it could result in a slightly lower range in following years. But you will have a lot of control because you have control over your W2. We reach out to our clients in the fall to see how their year is going and what they anticipate their W2 to be. That way we can do plenty of planning before the year is up.

If you have employees, we will examine their payroll and determine a contribution to be made on their behalf.