James M. Dahle, MD, FACEP, is the author of The White Coat Investor: A Doctor’s Guide to Personal Finance and Investing and blogs at http://whitecoatinvestor.com. He is not a licensed financial adviser, accountant, or attorney and recommends you consult with your own advisers prior to acting on any information you read here.
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3 Responses to “Cash Balance Plans Can Be an Extra Retirement Savings Account”
July 22, 2015
pete levasseurI read your cash balance plans article. A note to be made is that if you have BOTH a 401k and a defined benefit plan, your 401k is limited to 18k-24k (age dependent)plus 6% of Schedule C income, NOT $35,000 as in a solo 401K.
September 16, 2015
DOIWCI,
Looking into setting up a cash balance plan (cbp) have few questions.
1) Does your cbp provide a third party administrator (tpa)or do you have to get your own?
2) What types of portfolios does your cbp offer?
3) What do think is a fair cap on aum fees for these cbp?
4) What is going market rate for a tpa?
5) Do you have a list of cbp providers like was done in 401k comparison article?
Thanks for the great previous articles, have changed my out look on retirement!
September 21, 2015
James M. Dahle, MD, FACEP1) Generally provided.
2) Ours is a reasonable mix of mostly index mutual funds. I’ve seen portfolios anywhere from 52% to 72% stock (which I think is probably a little on the high side.)
3) As low as possible. Mine charges 0.3-0.4%.
4) Not sure.
5) No. That might be worth a future post though.