When talking to a prospective client that deals with professional services or have deep pockets, it’s always worth a consideration on whether a cash balance is a good idea. When coupled with a safe harbor 401(k) and new comparability, cash balance actuaries can work some magic and provide huge contributions to the plan sponsor’s owners and key decision makers.
Clearly, there are some prospects that don’t have the budget for it or maybe have too many employees to make it work, but I still think it’s worth the discussion because most advisors never bring it up because they don’t understand it.
Cash balance is an important conversation that you can start to allow yourself to stand out in the business.
