Cash Balance Plans: Best Practices and Key Considerations for Retirement Advisors

Joe Nichols is a Partner and the Director of Actuarial Services at DWC-The 401(k) Experts. He is also the President of the American Retirement Association, one of the nation’s premier nonproft retirement organizations. At DWC, Joe is responsible for streamlining defned beneft plan processes, ensuring the accuracy of his frm’s actuarial work, and facilitating effective communication between his clients and other interested parties. In his 30+ years of experience in the industry, Joe has worked with both national and regional actuarial frms. He has also helped design and implement hundreds of new cash balance plans over the last decade.

Cash balance plans, which blend features of both defined benefit and defined contribution plans, are the fastest-growing sector in the US retirement plan marketplace.1 Since 2001 the number of cash balance plans has climbed 17-fold, and assets in such plans now exceed $1 trillion. Given these encouraging trends, should advisors looking to build a robust and diverse service offering explore a cash balance plan component for their practice?

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.

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