Reduce Today's Taxes.
Accelerate Tomorrow's Wealth.
For high-income business owners, a Cash Balance Plan may allow you to deduct significantly more than a 401(k) alone - potentially saving six figures in taxes while building retirement assets that compound for decades.
A Cash Balance Plan is an IRS-approved defined benefit retirement plan that lets business owners contribute based on actuarial funding needs - not a percentage of salary - often well beyond standard 401(k) limits.
Illustrative only · Not tax, legal, or investment advice
Your 401(k) Was Never Designed
for Your Level of Income.
Most advisors stop at the 401(k). For business owners earning $300,000, $500,000, or more, that cap shelters less than a third of what's available through advanced plan design. The difference isn't incremental - it's structural.
A Cash Balance Plan is an IRS-approved defined benefit plan that lets you contribute based on what an enrolled actuary determines is needed to fund your retirement - not a percentage of salary. Combined with a 401(k), it creates one of the most powerful tax and retirement tools available to business owners.
$150K–$300K+
Typical Annual Contributions
For owners age 45–60 with consistent high income
3–5×
More Than a 401(k) Alone
Additional sheltering beyond the $70,000 combined limit
35–45%
Combined Tax Savings
Federal + state marginal rates on deductible contributions
Estimated Tax Deadlines Are Cash Balance Planning Deadlines
Plan design decisions made before each estimated tax payment can meaningfully reduce what you owe - and accelerate what you keep.
April 15
Q1 estimated tax due - start modeling your plan design now
June 15
Review payroll and compensation strategy before Q2 payment
September 15
Highest planning leverage - contribution ranges should be set
January 15
Final estimated payment - last window to optimize for the current tax year
How Much Could You Save?
Model your numbers in under a minute. See an illustrative comparison of your current 401(k) versus what may be possible with a Cash Balance Plan.
Example Result
$835K+
Potential Lifetime Tax Savings
Based on a 45-year-old owner earning $500K - your numbers will be different. Use the calculator to see yours.
- Compare 401(k) only vs. 401(k) + Cash Balance Plan
- See your annual tax savings instantly
- Takes about 60 seconds · No sign-up required
Free · No obligation · Illustrative only
A Powerful Tool - When Designed Correctly
Deduct 3–5× More Than a 401(k) Alone
Cash Balance Plans allow contributions well beyond the $70,000 combined 401(k) limit - often $150,000 to $300,000+ annually for business owners in their peak earning years.
Immediate Tax Reduction
Every dollar contributed is deductible to your business, reducing current-year federal and state tax liability while building retirement wealth on a tax-deferred basis.
ERISA Creditor Protection
Assets inside a qualified Cash Balance Plan are federally protected from judgments, malpractice awards, and - in most cases - bankruptcy.
Flexible Contribution Design
Contributions can be adjusted year to year based on business income. Plans can prioritize older, highly compensated owners while keeping employee costs manageable.
Integrated with Your Broader Strategy
At Montreux, your Cash Balance Plan is designed in coordination with your investment portfolio, tax planning, and succession goals - not in isolation.
Works Alongside Your CPA
We coordinate directly with your tax advisor. You get the plan design and administration expertise; your CPA stays the quarterback on tax strategy.
Is a Cash Balance Plan Right for You?
Cash Balance Plans are not for everyone. But when the conditions align, they can transform your tax position and retirement trajectory.
Likely a Strong Fit If You
- -Business owners earning $300,000+ annually who want to contribute more than $70,000 per year to retirement
- -Professionals with consistent income and a 5+ year time horizon before retirement
- -Firms with few employees, or where employee benefit costs can be managed through plan design
- -Owners seeking to reduce current tax liability while accelerating retirement savings
May Not Be Ideal If You
- -Businesses with unpredictable or insufficient cash flow to support consistent contributions
- -Companies with many full-time employees where nondiscrimination testing significantly limits owner contributions
- -Owners who cannot commit to contributing for at least 3–5 years on average
- -Those with minimal current tax liability who would not benefit from additional deductions
Three Steps to a Smarter Tax Strategy
Complimentary Feasibility Review
We analyze your income, age, employee census, and goals to determine whether a Cash Balance Plan is appropriate - at no cost and with no obligation.
Custom Plan Design
Working with enrolled actuaries, we design a plan tailored to your contribution objectives, cash flow, and retirement timeline.
Ongoing Administration & Coordination
We handle setup, compliance, annual filings, and investment coordination - integrated with your broader Montreux wealth management relationship.
What Business Owners Are Achieving
Hypothetical illustrations for educational purposes only. Individual results vary.
$245,000/year
Corporate Law Partner, Age 52
Combined 401(k) and Cash Balance Plan, reducing federal and state taxes by approximately $98,000 annually.
$180,000/year
Medical Practice Owner, Age 48
Three-physician group with customized allocations. Employee costs remained minimal while partners prioritized retirement savings.
$270,000/year
Real Estate Broker, Age 59
Contributing nearly 5× the SEP IRA limit, building $2.1M in additional retirement assets over 8 years.
Cash Balance Plans Are the Entry Point.
Integrated Wealth Management Is the Goal.
Montreux is not a plan administrator - we are a full-service wealth management firm. Your Cash Balance Plan is designed and coordinated within a broader relationship that encompasses investment management, financial planning, tax strategy, and estate planning.
When your retirement plan, portfolio, and tax strategy share the same advisors at the same table, the savings are not incidental - they are structural.
"We used to save maybe $50,000 with a SEP. With a properly designed Cash Balance Plan integrated into our broader strategy, we are now deducting over $200,000 a year - and our retirement trajectory has completely changed."
- Managing Partner, Professional Services Firm
Already Have a Tax Advisor? Perfect.
We do not replace your CPA - we complement them. Montreux handles plan design, actuarial coordination, and investment management while your tax advisor maintains oversight of your overall tax strategy. No turf wars. No disruption. Just a smarter, aligned approach.
Frequently Asked Questions
- What is a Cash Balance Plan?
- A Cash Balance Plan is an IRS-approved defined benefit retirement plan that allows business owners to contribute based on actuarial retirement funding needs - often $150,000 to $300,000+ annually, far beyond standard 401(k) limits.
- How much can I contribute to a Cash Balance Plan?
- For business owners age 45–60 with consistent high income, typical contributions range from $150,000 to $300,000+ per year. Exact limits are determined by an enrolled actuary based on your age, income, and retirement timeline.
- Can I have a Cash Balance Plan and a 401(k)?
- Yes. The most common structure combines a 401(k) profit-sharing plan with a Cash Balance Plan, allowing total contributions well beyond the $70,000 combined 401(k) limit for 2026.
- Who is a Cash Balance Plan best for?
- Business owners earning $300,000+ annually with consistent income, a 5+ year time horizon before retirement, and manageable employee census costs. Plans work best when cash flow is predictable.
- When is a Cash Balance Plan not a good fit?
- Plans may not be ideal for businesses with unpredictable cash flow, many full-time employees where nondiscrimination testing limits owner contributions, or owners who cannot commit to contributing for at least 3–5 years.
Learn more in our Insights library
In-depth guides on Cash Balance Plans, contribution limits, tax deadlines, and integrated wealth strategy.
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Schedule a complimentary 30-minute review. We'll discuss your situation and whether a Cash Balance Plan fits your goals - no obligation.
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Your information is handled with complete confidentiality.
This page is for educational purposes only and does not constitute tax, legal, or investment advice. Cash Balance Plan contribution limits are determined by enrolled actuaries based on individual circumstances. Illustrations and calculator results are hypothetical and do not guarantee future results. Montreux Wealth Management is a registered investment adviser. Please review our disclosures for important information.