Cash Balance Plan

Cash Balance plans are like traditional defined-benefit pension plans with a 401(k) or profit sharing component.

Controlled Group

A group of controlled corporations, or trades, or businesses under common control. The control is based on the percentage of ownership of a corporation or trade or business. There are intricacies involved in determining whether your company is part of a controlled group. Please consult your legal consultant regarding your firm’s status, since this could have an impact on the qualified status of the retirement plan(s) that you sponsor.

Questions to consider:

  1. Is at least 80% of your company owned by any other company?
  2. Does your company or any of its owners (including ownership by their children under age 21, grandchildren, parents, grandparents and spouses) together own more than 50% if any other company?
  3. Does a greater than 50% owner of your company (including ownership of all children, grandchildren, parents, grandparents and spouses) own more than 50% of any other company?

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