Tax Playbook · Business owners
Cash balance pension plans
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A cash balance plan is a type of retirement pension that lets older business owners stash far more pre-tax money than a 401(k). Around age 60 you can put in roughly $300,000+ a year in 2026 — on top of up to $80,000 more in a 401(k). Example: a $300,000 contribution at a 37% tax rate saves about $111,000 in taxes. The catch: you must hire an actuary, fund it every year, and it works best for businesses with few employees.
Good for: High-income business owners in their 40s–60s who want to save far more than a 401(k) allows.
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Recent articles & guides
- Cash Balance Pension Plans Explained: How They Work and Who Benefits — SuperMoney
- The Biggest Tax Deduction Business Owners Overlook — Entrepreneur
- 2026 Retirement Contribution Limits — World Advisors
- Cash Balance Pension Plans: The Smart Way to Turbocharge Your Retirement — Kiplinger
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.