How a CPA Can Help You Save Over $100K a Year With a Cash Balance Plan in 2025

How a Cash Balance Plan Can Help You Save Thousands—With Help from a CPA

Are you a business owner, doctor, or high earner looking to save money on taxes and build your retirement fast? If so, a Cash Balance Plan might be the perfect fit.

It’s a special kind of retirement plan that works like a pension—but with more flexibility and bigger tax savings. And when you team up with a CPA (Certified Public Accountant), you can get even more out of it.

Let’s walk through how this plan works, how much you could save, and how a CPA can help you make the most of it.

What Is a Cash Balance Plan?

A Cash Balance Plan is a type of retirement plan that acts like a mix of a 401(k) and a traditional pension.

• Like a 401(k), it grows with contributions and interest.
• Like a pension, it promises a certain amount at retirement.
• It’s part of the "defined benefit" family of plans—meaning it’s more structured than a regular IRA or 401(k).

Business owners and high earners love these plans because they can contribute way more money each year—and get big tax deductions for doing so.

How Much Can You Save?

The amount you can save in a Cash Balance Plan depends on your:

• Age
• Income
• Business type
• Retirement goals

But here’s a general idea:

That’s much higher than what you can put into a 401(k), which maxes out at about $69,000 in 2025 with catch-up contributions.

The best part? These contributions are 100% tax-deductible for your business.

Real Example: How Much Can You Save?

Meet Dr. Lisa, age 55. She owns her own medical practice and makes $300,000 per year. With the help of her CPA, she sets up a Cash Balance Plan.

Here’s what happens:

• She contributes $160,000 to the plan in 2025
• That lowers her taxable income to $140,000
• She saves about $60,000 in federal and state taxes
• That $160,000 also grows tax-deferred for retirement

With help from her CPA, she repeats this every year for 10 years—saving over $600,000 in taxes and building over $1.5 million for retirement.

Why You Need a CPA

A CPA does more than just file your taxes. When it comes to a Cash Balance Plan, a CPA helps you:

• Calculate the right contribution based on income and age
• Design the plan so it fits your business goals
• Work with an actuary to keep it IRS-compliant
• Combine it with a 401(k) to supercharge savings
• Plan your taxes to get the biggest deductions

A CPA knows all the rules and numbers that can help you avoid mistakes and maximize benefits.

Can You Have Other Plans Too?

Yes! You can have a:

• Cash Balance Plan
• 401(k)
• Profit-sharing plan

All at the same time.

This is called a stacked plan and it can help you save even more money.

For example:

• 401(k) + profit-sharing = up to $69,000/year (age 50+)
• Cash Balance Plan = up to $300,000/year (age 60+)

Total savings = almost $370,000/year in tax-deferred money.

Who Should Use a Cash Balance Plan?

• Cash Balance Plans are great for:
• Business owners with steady profits
• Doctors, dentists, and lawyers
• Self-employed professionals
• High-income earners over 40
• Small business owners with few employees

You don’t need a big company. Even a solo business can set one up.

When Should You Set One Up?

You should open a Cash Balance Plan before December 31st to get the tax deduction for that year.

But you can fund it later—usually by your business tax filing deadline (with extensions).

The earlier you start, the more time you’ll have to:

• Contribute
• Save on taxes
• Grow your money

Are There Any Risks?

There are a few things to keep in mind:
⚠️ You must commit to funding it for several years
⚠️ It has setup and admin costs
⚠️ You need to follow IRS rules
⚠️ If you have employees, you may need to offer them a benefit too

But with a good CPA, these risks can be easily managed.

CPA Tip: Maximize Deductions and Compliance

A CPA will help you stay on track by:

• Running the numbers every year
• Adjusting contributions based on income
• Filing required IRS forms
• Avoiding penalties or audits
• Making your retirement plan legal and smart

This is why partnering with a CPA is the best way to make your Cash Balance Plan work.

Final Thoughts

A Cash Balance Plan is one of the smartest tools out there for saving on taxes and building wealth—especially for high earners and business owners.

It lets you:

• Save hundreds of thousands for retirement
• Take huge tax deductions
• Build a secure financial future
• Grow your business and keep more of what you earn

But it works best when you have a CPA by your side to guide you every step of the way.

So if you want to keep more of your money in 2025—and grow your future—ask your CPA about setting up a Cash Balance Plan today.