09/15/2025
The Challenge: High Income, High Taxes, and Limited Savings
Dr. Alice has been maxing out her 401(k) profit-sharing plan, contributing around $77,500 per year (including catch-up contributions). Over the years, she’s built up about $600,000 in retirement savings—not bad, but not nearly enough given her high earnings and plans for financial security.
With five full-time staff members, she values her employees and provides them with safe harbor 401(k) contributions. But she needs a way to turbocharge her savings while reducing her growing tax burden.
The Solution: A Cash Balance Plan
After consulting with a Third-Party Administrator (TPA) and her CPA, Dr. Alice learns about Cash Balance Plans (CBPs)—a game-changing strategy for high-income professionals like her.
Here’s how her plan is structured:
✔ Dr. Alice contributes $232,000 per year to her CBP
✔ Her staff receives a modest 2–4% pay credit ($3,000–$5,000 per employee)
✔ The plan’s interest credit is set at 5%,
Read more
https://fbsgroup.co/cbp-blog/
Disclaimer: This case study is a hypothetical scenario created for illustrative purposes only. While the income figures, tax implications, and retirement strategies discussed have been evaluated for realistic financial accuracy, Dr. Alice is a fictional character and not an actual client. Individual circumstances vary, and this content should not be considered personalized financial, tax, or legal advice. Please consult with a qualified advisor before making any financial decisions.
