A Hartford news release said the new cash balance program is designed to complement a 401(k) program, allowing small businesses and professional entities to fund a plan that might generate as much as $195,000 in annual retirement income. Annual contributions to the plan can be as high as $300,000 or more.
Employer contributions made to the cash balance plan can generally be deducted on the firm’s federal tax return, Hartford said. Unlike defined contribution plans, the benefits from cash balance plans can be more heavily weighted towards business owners and key employees, provided certain requirements are met.
More information is available by calling 860.843.8993.