Cash balance plans primer

Cash balance plans are a type of retirement plan that gives members a defined lump sum at retirement. They offer more portability than traditional pension plans. While defined benefitplans promise a specified monthly benefit at retirement, and defined contribution plans, like 401(k)s, depend on contributions and investment performance, cash balance plans offer a middle ground, providing guaranteed interest rates regardless of market performance. Transitioning from traditional pension plans to cash balance plans involves careful plan conversions. This primer will guide