Frequently Asked Questions List
- How much can I deduct?
- Is there year-to-year flexibility on how much I can deduct?
- How is the contribution divided up among the participants (Does everyone receive the same amount of money)?
- How do sponsors evaluate whether these Combo Plans are a good deal on a numbers basis?
- Can some people have a 401(k) deferral only plan while others are in a plan with employer contributions?
- Are these Combo Plans legal?
- How much does a Cash Balance Plan cost to administer?
- What's entailed in maintaining a Cash Balance Plan and about how much time does the owner usually spend related to the plan in a year's time?
- If a business can no longer support a Cash Balance Plan, are there ways to limit or even eliminate future contributions?
- Can the Cash Balance Plan experience "runaway" costs?
- Can I end the plan at any time?
- Who is responsible for the plan’s investments?
- Can different partners deduct different amounts?
- Can employees be excluded from the Cash Balance Plan?
- What happens if the Cash Balance Plan becomes underfunded?
- What happens if the plan terminates overfunded?
- Will short term older employees receive a lot of money from the plan?
- Can I prevent employees from knowing how much I and other employees receive from the plan?
- If I have multiple businesses, must all of my businesses be covered by the plan?