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Cash Balance PlansCash Balance Plans
Investing for retirement can be problematic for professionals in partnerships or other types of closely held firms. Yes, that includes lawyers in law firms. These individuals tend to spend their early careers focused on building their business. By the time they're ready to start saving money for retirement, standard retirement savings vehicles such as 401(k) plans can shelter only a small portion
Stephen Lippman & Gregory D. Singer
Investing for retirement can be problematic for professionals in partnerships or other types of closely held firms. Yes, that includes lawyers in law firms.
These individuals tend to spend their early careers focused on building their business. By the time they're ready to start saving money for retirement, standard retirement savings vehicles such as 401(k) plans can shelter only a small portion of their income. The rest is subject to taxes, often in the highest brackets.
Cash balance plans can help. A type of defined benefit retirement plan,1 cash balance plans have much higher annual contribution limits than 401(k)s — nearly 10 times higher for older individuals — enabling participants to build substan...
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