Cash Balance Plan Calculator

Project the growth of your Cash Balance Plan, a powerful 'hybrid' retirement plan used by high-income professionals and business owners.

Plan Details

Current Plan Balance

Annual Employer Credit

Interest Credit Rate (%)

Years Until Retirement

Retirement Outcome

Projected Retirement Balance$1,236,821After 15 years

Plan Balance Growth

Overview

Project the growth of your Cash Balance Plan, a powerful 'hybrid' retirement plan used by high-income professionals and business owners.

💡

Pro Tips

What is a Cash Balance Plan?: A Cash Balance Plan is a type of defined benefit plan that looks and feels like a 401(k). The employer credits a participant's account with a set percentage of their yearly compensation (pay credit) plus interest (interest credit).
Who is this plan best for?: It is popular among high-earning small business owners and partners (like physicians or attorneys) because it allows for much higher tax-deductible contributions than a standard 401(k) or SEP IRA.
Is the interest rate guaranteed?: Typically, yes. The plan specifies an interest credit rate (e.g., 5% or the 30-year Treasury rate). The employer bears the investment risk to ensure this rate is met.

Fun Facts

"Cash Balance Plans are 'hybrid' because they combine features of both defined benefit and defined contribution plans."
"Annual contribution limits for Cash Balance Plans increase with age, often exceeding $250,000 for participants in their 60s."
"At retirement, you can usually roll the balance over into an IRA or take it as a lifetime annuity."

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Cash Balance Plan Calculator

Project the growth of your Cash Balance Plan, a powerful 'hybrid' retirement plan used by high-income professionals and business owners.

Plan Details

Current Plan Balance

Annual Employer Credit

Interest Credit Rate (%)

Years Until Retirement

Retirement Outcome

Projected Retirement Balance$1,236,821After 15 years

Plan Balance Growth

Overview

Project the growth of your Cash Balance Plan, a powerful 'hybrid' retirement plan used by high-income professionals and business owners.

💡

Pro Tips

What is a Cash Balance Plan?: A Cash Balance Plan is a type of defined benefit plan that looks and feels like a 401(k). The employer credits a participant's account with a set percentage of their yearly compensation (pay credit) plus interest (interest credit).
Who is this plan best for?: It is popular among high-earning small business owners and partners (like physicians or attorneys) because it allows for much higher tax-deductible contributions than a standard 401(k) or SEP IRA.
Is the interest rate guaranteed?: Typically, yes. The plan specifies an interest credit rate (e.g., 5% or the 30-year Treasury rate). The employer bears the investment risk to ensure this rate is met.

Fun Facts

"Cash Balance Plans are 'hybrid' because they combine features of both defined benefit and defined contribution plans."
"Annual contribution limits for Cash Balance Plans increase with age, often exceeding $250,000 for participants in their 60s."
"At retirement, you can usually roll the balance over into an IRA or take it as a lifetime annuity."

Used with this

Similar tools that might be useful

AFFO Calculator

Calculate Adjusted Funds From Operations (AFFO), a key performance metric for Real Estate Investment Trusts (REITs).

AFN (Additional Funds Needed) Calculator

Determine the amount of external funding a business needs to support a projected increase in sales.

ARV Calculator (House Flipping)

Calculate After Repair Value and determine the maximum offer price using the 70% rule for real estate investors.