Many top executives, the leadership team, and important mid-career key employees worry that the current retirement plan program does NOT meet their retirement savings goals.
There are 4 main problems with this scenario.
One, is that you can max out on a 401(k) plan even if you’re over 50 and have a profit-sharing plan in place.
Two, many large companies offer the same type of plans, but since the goals are to attract and retain top talent for continued success, key employees want more benefits.
Three, the leadership team is looking for a plan that’s more reliable, safe and has the potential to more than double their tax-deferred contribution amounts and drive down tax liability.
Four, it’s not an easy process to change 401(k) providers for a large corporation and there is an easier way to simply upgrade the retirement program without all the hassles.
This is where a Cash Balance Plan can be implemented.
To show an example, here is an actual 401(k) plan design for a large medical group. This illustration works well for a large company with executives, top talent, and key employees as well.
In this plan design we helped out a total of 174 employees, 56 partner physicians over 50 years of age, 58 non-partner physicians over 40 years of age, 10 nurse practitioners over 36 years of age and 12 staff members over 48 years of age. This can also work for a very large company as well. See chart.
With this plan design, all the physicians, along with the retirement committee members, would achieve their goals and have larger tax deductions with accelerated retirement savings. One more advantage to point out is that ALL of the contributions to the plan are creditor protected.
These results could be similar even with a large corporation with multiple divisions, executives, and key employees as well.
By the way, if your company is not this large, than this is the article for your firm What Business Owners Need To Know
The bottom line is any retirement committee along with the executives and top talent would be more than happy with these results.
Just imagine what this plan design would look like after having the plan in place for several years. Many of the top talent would see dramatic improvement in their retirement accounts, and this outstanding plan aids in retention, satisfaction and happier employees within the company as well.
If you’re a large company and are asking yourself how can we upgrade our current retirement plan for these larger tax deductions and accelerated retirement savings? Let us show you how, contact us at info@crosspointwealth.com or 773-255-0411.
Until Next Time…
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