Cash-Balance Plans Appeal to Small Firms
Small-business owners and professional groups are discovering a new way to save for
retirement: cash-balance pension plans. A type of defined-benefit plan governed by the Employee Retirement Income Security Act, these hybrid plans let high earners, especially professionals, save a higher amount of pretax dollars than a traditional 401(k) or profit-sharing plan. In effect, these earners can effectively cut taxes and increase retirement savings.
Source: WSJ.com | July 16, 2009
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