401k and Cash Balance Plans

Wealth-Building Made Simple · Sep 22, 2023 · 11m

Key Takeaways: The CARES Act allows business owners to receive up to a $5,000 tax credit for the next three years to offset administrative costs of setting up a 401(k) plan. Requiring auto enrollment for employees in a 401(k) plan can result in a $1,500 tax credit for the business owner in the first year. Cash balance plans allow business owners to contribute a significant amount of money towards retirement, potentially several hundred thousand dollars per year. Cash balance plans require a five-year commitment and annual contributions, even in years with poor cash flow. Chapters: |…