How much does a Cash Balance Plan cost to set up?
Kongruent's Direct-to-Owner plan design starts at $2,500/year, which typically includes custom Cash Balance Plan design, 401(k) combo optimization, annual actuarial valuation, AFTAP certification, and Form 5500 / Schedule SB preparation. Setup costs are often rolled into the first year's administration fee. Complex multi-owner or multi-practice cases receive a custom quote based on complexity.
Do I need an appointment for a consultation?
Yes — Kongruent offers a free initial consultation to review your business structure and estimate your potential tax savings. You can book directly through the Contact page or by calling 978-971-4503.
How long does it take to implement a new pension plan?
Most Cash Balance Plans can be designed and ready for implementation within a few weeks once financial and census data is provided, though the exact timeline depends on plan complexity and coordination with your CPA and financial advisor. Plans are generally best adopted before your business's fiscal year-end to maximize the current year's tax deduction.
What retirement plans do you specialize in?
Kongruent specializes in Cash Balance Plans, 401(k) Combo (401(k) + Profit Sharing + Cash Balance) designs, and traditional Defined Benefit plans for high-income business owners, as well as white-label actuarial support — including AFTAP certifications and Schedule SB preparation — for TPA firms nationwide.
What is the tax advantage of a Cash Balance Plan?
Cash Balance Plans allow significantly higher tax-deductible contributions than a 401(k) alone — often $100,000 to $300,000+ annually depending on age and income — which can meaningfully lower your current-year taxable income while accelerating retirement savings.
Are Cash Balance Plans suitable for sole proprietors and solo consultants?
Yes. Solo, high-income consultants and self-employed professionals are strong candidates for a solo Cash Balance Plan, which can allow them to catch up on retirement savings significantly faster than a Solo 401(k) alone while lowering their tax bracket in high-income years.
How often do actuarial valuations need to be performed?
Cash Balance and other Defined Benefit-style plans require an annual actuarial valuation to certify funding status, prepare required IRS filings (including Schedule SB), and confirm the plan remains in compliance.
Still have questions?
Our experts are ready to help you navigate complex retirement plan requirements.