New Cash Balance Retirement Plans Increase 15%, Plan Sponsor Contributions Up 30%
There were 20,452 Cash Balance plans active in 2016, the most recent year for which complete
"Cash Balance plans are particularly appealing to small business owners who need to catch up on delayed retirement savings," said
Key findings from theĀ 2018 National Cash Balance Research Report:
- Small businesses are driving Cash Balance growth: 92% of Cash Balance plans are in place at firms with fewer than 100 employees; 57% have 10 or fewer employees.
- Companies with Cash Balance plans increase their contributions to employee retirement savings 50% or more: The average employer contribution to staff retirement accounts is 6.9% of pay in companies with both Cash Balance and 401(k) plans, versus 4.7% of pay in firms with a 401(k) plan alone.
California andNew York have the most plans overall while the fastest growth has been inGeorgia andMichigan :California andNew York account for 25% of all new Cash Balance plans followed closely byTexas ,Ohio , andFlorida .Georgia is a regional powerhouse with close to 29% year-over-year growth in new plans.IRS regulations allowing broader Cash Balance investment options have accelerated growth in new plans: The "Actual Rate of Return" option and other new investment choices approved in the 2010 and 2014 Cash Balance regulations made these plans more flexible for employers and removed certain funding issues. The number of large plans using Actual Rate of Return is now 39%, up from just 10% five years ago.
These and other highlights for the 10th annual National Cash Balance Research Report will be discussed during theĀ Cash Balance Outlook 2018 webcastĀ led byĀ Dan KravitzĀ onĀ Tuesday, September 18Ā atĀ 11 a.m.Ā Pacific/
Download the 2018 National Cash Balance Research Report here.
Register for the Cash Balance Outlook 2018 webinarĀ here.
For more information, callĀ Dan KravitzĀ at 818-379-6162 and visitĀ CashBalanceDesign.com.
About Kravitz
Since 1977, Kravitz, an
About
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