High-income partners, associate compensation structures, and aggressive tax planning goals. We design 401(k) and cash balance plans that maximize owner benefits.
Request a Plan ReviewHigh Income, Complex Structures
$200K–$350K+ Annual
Professional service firms are the ideal candidates for combo cash balance plans. Owner ages, high income, and relatively small staff create the perfect demographics for maximizing contributions — often $200,000–$350,000 per partner per year.
Testing Friendly
The age and compensation gap between partners and associates typically makes cross-testing straightforward. We model the plan to ensure owners receive the maximum allocation that passes testing.
Multi-Entity
Many professional firms operate through multiple entities — a practice entity, a management company, and sometimes separate LLCs for different service lines. We test across all controlled group members.
Flexible Timing
Professional service income is often lumpy. We design plans with discretionary profit-sharing and flexible cash balance contribution ranges so you can optimize contributions based on the actual year-end financials.
Most Common
Safe Harbor eliminates deferral testing. New Comparability allows the profit-sharing contribution to be weighted heavily toward partners. Clean, effective, and relatively simple to maintain.
Maximum Savings
For firms with high partner income and a desire to shelter well beyond $70,000 per year, a cash balance plan layered on top of the 401(k) can push total contributions past $300,000 per partner.
Budget-Flexible
If partner income varies significantly year to year, a traditional plan with discretionary profit-sharing gives you maximum flexibility on both the deferral and employer contribution side.
FAQ
With a combo cash balance plan, partners in their 50s can typically contribute $250,000–$350,000+ per year. Even without cash balance, a Safe Harbor 401(k) with New Comparability profit-sharing can reach $70,000 per partner with relatively modest staff costs.
Eligibility provisions and vesting schedules manage this. Employees who leave before vesting generate forfeitures that reduce your future contribution cost. We design the plan to account for typical professional services turnover patterns.
Profit-sharing contributions are discretionary and can change annually. Cash balance contributions have a range that provides some flexibility. We design for the flexibility you need based on your firm's income patterns.