Compelling Value Propositions

Accelerated Pre Tax Savings

Reduced Taxable Income

Asset Protection

Cash Balance Plans are a form of Qualified Retirement Plans. Cash Balance contributions are defined by a Lump Sum amount that is eligible to be saved by retirement age. Depending on the plan's Normal Retirement Age and the number of years the participant will be in the plan, this amount can exceed $2.5 million per participant. For individuals who may have deferred saving while building their business, a Cash Balance Plan may offer a meaningful way to accelerate savings. Cash Balance Plans can be implemented in conjunction with 401(k) and Profit Sharing Plans to maximize savings and tax benefits.

This solution is for professionals and business owners who are generally:
  • Paying significant taxes (typically $100,000 or more)
  • Consistently profitable with substantial annual revenues
  • At least 45 years old with significant income
  • Seeking to make sizable contributions
  • Committing to consistent annual contributions for at least 3 years
  • Maximizing 401(k) and profit sharing plan contributions
401k graph

*The maximum contribution is calculated independently for each individual, based on a number of factors and may vary significantly. A cash balance plan is more tax effective when owners are at least 10 years older than the youngest employees, and the bigger the disparity, the better.


The two owners are ages 50 and 55. There is an allocation to their respective cash balance accounts of $102,000 and $141,000. The practice contributes 7% X $40,000 X by 8 = $22,400. The total tax deductible contribution for the owners is $256,400.

There is overhead: the employee funding costs of $22,400 and professional service fees include actuarial, record keeping, administrative, fiduciary, custody, etc. of $5,000.

The net economic benefit (net tax savings) to the owners is $60,142 which would otherwise be paid to the Internal Revenue Service as income taxes. The benefit exceeds the cost and the owners have significantly increased their retirement funds at the same time.

Tax Savings (@33%)
Owner 1
Owner 2
All others (8)
Total Tax Deduction


Tax Savings @33%
$87,582 (265,400 x 33%)
Less part. funding cost
$22,400 (40,000 x 8)*7%
Less est. prof. fees
Net Tax Savings


Bell Rock Capital, LLC is an SEC Registered Investment Advisor. We utilize proprietary research as well as technology-driven investment tools to manage accounts and conduct fundamental and technical analysis on the companies we consider before investing. The Company has established relationships with top tier partners to deliver institutional caliber, cost efficient retirement plan options that are customized to the needs and objectives of the client.