Retroactive Cash Balance or Profit Sharing Plans

Immediate Tax Relieve

Maximize ALL tax credits and lower your client's tax liability for the 2025 tax year, by adopting a 2026 retirement plan in 2025!

With the SECURE Act legislation, the Cash Balance and Profit-Sharing Start-Up Deadline for a 2025 tax deductible plan is September 15th, 2026 (with extension), lowering the amount of taxable income for 2025.

How does it work?

You can now complete a preliminary tax return for 2025, determine your client's tax liability, and then design an appropriate Cash Balance or Profit-Sharing plan to receive additional tax deductions.

To get started, follow these steps:

1.	Review your client’s preliminary 2025 tax return to evaluate the potential tax benefits and savings associated with setting up a Cash Balance or Profit Sharing plan.
2.	Decide on the type of plan that best suits your client’s business needs. TIP: Cash Balance plans are typically better suited for smaller businesses with fewer employees, while Profit Sharing plans can be a good option for larger businesses with more employees.
3.	Work with our in-house Actuarial team and administrators to start up the plan and ensure that it is compliant with all applicable laws and regulations.
4.	Finally, your client will make contributions to the plan for 2025 before the extended tax deadline and deduct those contributions on their 2024 tax return.

Tip: If a Cash Balance contribution is too high for your retroactive plan, consider doing Profit-Sharing, which is less costly in both contributions and administration.

By taking advantage of a retroactive Cash Balance or Profit Sharing plan, your client can save thousands of dollars in taxes

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