Most people can contribute to their 401(k) without worrying about exceeding the annual contribution limit. If you’re under 50 years old, that’s $18,000 a year. If you’re 50 or older, it’s 24,000.
A small, but important segment of the population, though, has the ability to contribute significantly more to their retirement accounts. For some of them, a profit sharing plan and 401k ups the saving limit to $60,000. But for people really looking to save even more on taxes and put more into a retirement account, a cash balance plan may be the right choice since it offers the opportunity to contribute six figures to their retirement account each year.
Know more at https://www.pentegra.com/expertise/advisor-connect/cash-balance/
