Interesting article in Dental Economics today by Brian Hufford. It is about how some of the changes made by the Pension Protection Act now make pairing a 401(k) plan with a cash balance plan attractive. The example given in the article is how a dentist employing his spouse can design a 401(k)/Cash Balance combo to maximize their contributions while minimizing the contributions to the staff.
I haven’t worked through the numbers in this example yet. What caught my attention about this article is that it parallels a number of discussions I’ve had lately about how 401(k)/Cash Balance plans may be the next interesting plan design.
[tags]401(k), cash balance, plan design, pension, retirement, ERISA[/tags]
