A Large Medical Group

Catching up on delayed retirement savings and reducing tax liabilities are the two biggest financial challenges facing many physicians today. Cash Balance plans may solve both challenges. Pairing a Cash Balance plan with a medical group’s existing 401(k) Profit Sharing plan allows physicians to double or even triple pre-tax retirement savings. These contributions can also reduce taxable income.

Medical firms are excellent candidates because Cash Balance plans:

  • Reduce taxable income
  • Allow flexible contribution levels for owner-partners
  • Are a powerful tool for recruiting and retaining top talent
  • Squeeze 20 years of savings into 10
  • Fully protect assets from creditors
  • Are portable and allow lump-sum rollovers into an IRA



  • Older partners need to accelerate their retirement savings
  • Each partner needs the flexibility to contribute different amounts and not be locked into a required contribution
  • Partners want the option to set up a separate 401(k) plan for associates
  • Management and non-participating partners want to minimize liability for other partners’ contribution amounts

Plan Design Solution:

  • FuturePlan designed a Cash Balance plan allowing the below contribution amounts for the owner-partners
  • Associates did not contribute to the Cash Balance plan and only contributed 3% of their pay to the Safe Harbor Profit Sharing plan, to satisfy non-discrimination testing
  • The Interest Crediting Rate was tied to the performance of the portfolio, thereby greatly reducing risk

Download our full case study here.

Retirement Plan Illustration – 2023

Do you have clients or prospects looking to accelerate retirement savings and reduce their tax burden? To receive a Cash Balance Overview with one of our dedicated FuturePlan Cash Balance experts, fill out this quick form here.