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The Defined Benefit Lump Sum

Cash Balance Plans

The 2023 Defined Benefit lump sum distribution increased by $266,000, presenting Plan Sponsors with the opportunity to increase their annual defined benefit dollar contribution. Building your business with Cash Balance plans is a maintainable and consistent way to increase assets under management.

Historically the defined lump sum annual limit has increased every year. 


Annual Limits 2023 2022 2021 2020

DB Lump Sum

$3,417,000 $3,151,000 $3,000,000 $2,948,000

DB Dollar Limit

$265,000 $245,000 $230,000



The Increased Opportunity with Cash Balance Plans:
  • Accumulate new assets under management with much larger contribution limits compared to other qualified retirement plans.
  • Cash Balance accounts have the flexibility of being pooled together, so you can effortlessly manage your book of business with a single account.
  • Cash Balance plans are trustee directed, so you can focus on investments and purposefully managing your clients’ assets.


Contact our Regional Vice President Retirement Plan Sales to learn more about our Ideal Cash Balance Plan.

About the author

Heather Craigg