plan. This meant that an employer could have a single cash balance plan with different investment categories for different groups of employees. Many senior employees, for example, are closer to retirement and usually benefit more from conservative investment strategies. Younger employees, on the other hand, can benefit more from aggressive strategies. The Takeaway Ultimately, the legislation and regulations since 2006 have made cash balance plans increasingly more flexible and popular. The Pension Protection Act confirmed the legality of cash balance plans, and the IRS regulations in 2010 and 2014 added new options that made the plans even more dynamic and beneficial. Cash balance plans have experienced consistent double-digit growth over the last decade and have 12.3 million participants nationwide. This growth is only expected to continue in the coming years. Cash balance plans are certainly not for everyone, but for a certain type of business, they provide the opportunity to save hundreds of thousands of dollars annually in tax payments. What is your business worth? Again, here they are: Do you know what rate of return you must earn on your current investments to sustain your current lifestyle after you retire? Do you know how much you need to be saving right now to fund your retirement years? Is your retirement account insured from market losses, fees, and commissions? How long will you have to continue working after your ideal retirement date? Have you factored inflation into your retirement calculations? Are your assets protected from Probate and other outside predators?
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