Ideal Case Studies

Here are some case studies of companies that really benefitted from implementing a qualified retirement plan.

Anesthesiologists, Ltd is a practice of 4 licensed anesthesiologists who provide services to different hospitals. The company doesn't have any other employees besides the 4 equal owners. We were able to come in and add a Cash Balance Plan on top of their current 401(k) Profit Sharing Plan to get each owner an additional $82,000 tax deduction per year.

Family Dentistry, P.A. is a dentist's office with one dentist and 6 other employees. The dentist has been saving about $50,000 a year in his 401(k) plan, but it has only accumulated to about $500,000 and he wants to retire in 5 years. Most of the earnings from his practice have been spent paying back school loans, buying the practice, upgrading the equipment, and putting his kids through college. He'd like to sell the practice when he retires, but he is realizing that it won't provide for the comfort he was hoping for in retirement. We were able to add a Cash Balance Plan on top of his current 401(k) Profit Sharing Plan to increase his annual retirement savings from about $50,000 a year to over $170,000 a year.

Web Developers, LLC is a new company but it is growing very quickly. It needs to hire more employees to keep up with the demand from its clients, but the best and brightest employees keep taking job offers with bigger companies. Some of the existing employees are requesting a retirement plan. We were able to add a very basic 401(k) plan with low fees and no required contributions from the owners so now the employees can defer over $16,000 a year if they'd like to.

Jim has a small consulting practice for the past 3 years that pays him about $120,000. Jim's wife is the CEO of a large company and they are sick of writing large checks to the government every year. We set up a defined benefit plan for Jim based on his prior salary so he could contribute the entire $120,000 he earns each year into the plan. Once he and his wife retire, they will be able to withdraw the money when they are hopefully in a lower tax bracket.

Alicia owns a small law practice and her income really fluctuates from year to year depending on how many cases she wins. Some years Alicia doesn't have any income and other years she makes almost $1 million. We set up a Cash Balance Plan based on her compensation for the year so when she has good years the contribution is around $200,000, and in bad years a contribution is not usually required.

If any of these situations sound like someone you know, please contact us as we can probably help them with a plan design to meet their needs.

Cash Balance Actuaries, LLC

Cash Balance Actuaries, LLC

970 Iris Circle
Excelsior, MN 55331
W: 952.500.8696
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