Contributions, Benefits, and What Actually Matters Cash Balance Plans are governed by a layered set of IRS limits that control how much can go in, how much can be promised, and how benefits are ultimately paid out. Understanding these constraints is critical not just...

Cash Balance Plans (CBPs) operate inside a tightly regulated ERISA and IRS framework. The deadlines aren’t arbitrary, they exist to ensure actuarial integrity, participant protection, and tax compliance. For plan sponsors (especially medical practices), missing a...

Overfunding isn’t a sign your plan is “winning.” It’s a signal the design is misaligned. In traditional Fixed Interest Crediting (FIC) plans, the disconnect between how assets grow and how liabilities are measured creates predictable—and preventable—surplus. Here are...

Underfunding doesn’t happen because markets are “bad.” It happens because the plan design fails to absorb how markets actually behave. Traditional Fixed Interest Crediting (FIC) creates a rigid liability structure that keeps growing—regardless of whether assets keep...

Introduction This is not a hypothetical example. This is a real-life cash balance plan, and every data point in this analysis was sourced directly from the filed Form 5500s. The plan sponsor, a successful dentist, did everything most advisors could consider “right.”...

First-Year Implementation — No Prior Year Plan Practice Profile Owner: Age 52 physician Income (W-2 / K-1 combined): $1,000,000 Employees: 8 total Avg age: 38 Avg comp: $80,000 Existing Plan: 401(k) + Profit Sharing   Baseline (Owner Only – No Existing Cash...

How One Doctor’s Cash Balance Plan Went Completely Off the Rails   Introduction This case study is not hypothetical. It is a real cash balance plan reconstructed entirely from publicly filed Form 5500 data. What it shows clearly and uncomfortably is how a plan can...

Plan Profile (Typical Physician Group) 1 owner physician, age 55 Target CB contribution: $400,000/year Plan assets (January 1): $2,400,000 Funding status (starting): FTAP/AFTAP ≈ 78% (Restricted) Investment allocation: 60/40 portfolio   Scenario A — Stay with 5%...

Plan Profile (Typical Physician Group) 1 owner physician, age 52 Target CB contribution: $350,000/year Plan assets (January 1): $2,800,000 Funding status (starting): FTAP/AFTAP ≈ 92% (slightly underfunded) Investment allocation: 60/40 portfolio   Scenario A —...

Either Way, Your Cash Balance Plan Has a Design Problem! Good News – Congress already addressed the flaw. Most plans just haven’t caught up!   If your cash balance plan is underfunded or overfunded, the instinct is to blame investment returns.  That’s almost...

If you sponsor a cash balance plan, there’s a narrow window right now that most physicians miss and it can cost you significantly in either unexpected contributions or lost tax deductions.  That window closes shortly after your AFTAP certification. What Just Happened...

For most physicians and practice owners, the Adjusted Funding Target Attainment Percentage (AFTAP) sounds technical, but its impact is very practical. Once your actuary certifies your AFTAP (typically by March 31), your plan’s operating rules for the rest of the year...