Market-Rate Cash Balance Plan
Put our defined benefit plan experience to work for you
Sponsoring a defined benefit plan in today’s economy comes with challenges. Bank of Albuquerque can help you navigate these complexities.
Here's how our market-rate cash balance plan can help:
Scenarios based on executives age 52 at separate companies with annual compensation of $330,000 with contributions to a company-sponsored 401(k) plan.
$30k annually
The maximum annual deferral is $22,500. However, since executive #1 is over age 50, she can contribute an additional $7,500 in “catch-up” contributions.
$280.5k annually
In addition to the first scenario, executive #2 has a cash balance plan in place and may be able to contribute up to an additional $250,500 in pre-tax income based on the specific demographics of his company.
The above example is to demonstrate the potential contribution of this specific individual. Individual limits may vary depending on a number of factors. These numbers are based on 2023 IRS retirement plan contribution limits.
Are you searching for solutions to help accelerate saving for retirement and reduce taxable income beyond a 401(k) and profit sharing?
Consider a cash balance plan, which offers many advantages:
- Maximize retirement contributions
- Reduce taxable income
- Recruit and retain key talent
With this defined benefit plan, participants' lump sum payments after retirement are determined in advance.
Three questions to consider
Business owners deciding whether to offer a cash balance plan should ask themselves the following:
- Have I maxed out 401(k) contributions and profit sharing?
- Do I have an appetite and ability to put money in a cash balance plan for the next three years?
- Am I also willing and able to contribute 6% of employees’ pay to their retirement savings (6% total, taking into account all employer-offered retirement plans)?
Is a cash balance plan right for your business?
Learn more
Our market return cash balance plan allows you to credit the actual return on assets and reduces unexpected contribution amounts with consistent contributions and easily budgeted annual expenses. Learn more about how we can help you meet your retirement plan needs.
Award winning services
Bank of Albuquerque was nationally recognized for its retirement plan services excellence in PLANSPONSOR’s 2021 Defined Contribution Survey, a survey recognizing the top retirement plan providers in the nation based on the quality of participant and plan sponsor services.
12
"Best in class" awards2
#1 rank
Best provider "overall"
#94
Net promoter score1
BOK Financial® is a trademark of BOKF, NA. Member FDIC. Equal Housing Lender, © 2023 BOKF, NA. BOK Financial Corporation (BOKF) offers wealth management and trust services through various affiliate companies and non-bank subsidiaries including advisory services offered by BOKF, NA and its subsidiaries BOK Financial Asset Management, Inc. and Cavanal Hill Investment Management, Inc, each an SEC registered investment advisor. BOKF offers additional investment services and products through its subsidiary, BOK Financial Securities, Inc., a broker/dealer, member FlNRA/SIPC, and an SEC registered investment adviser and BOK Financial Private Wealth, Inc, also an SEC registered investment adviser. NOT FDIC INSURED I NO BANK GUARANTEE I MAY LOSE VALUE
1 BOK Financial's banking subsidiary, BOKF, NA, is among the top 25 nationally chartered U.S.-based commercial banks based on assets as of March 30, 2022, according to the U.S. Federal Reserve.
2Credit ratings as of September 30. 2021.