Cash balance plans provide practical option for today's retirement environment

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By Paul R. Bonsee, Zorast Wadia | 01 June 2010

Cash balance plans, which combine some of the features of defined benefit and defined contribution plans in a single vehicle, can help improve the competitiveness of a retirement plan package while mitigating risk. Although 401(k) plans are likely to remain the leading retirement plan option for years to come, consultants and advisors would be wise to understand the potential of cash balance plans, and to be comfortable in presenting the option to their clients.