Institutional Model

Investing Ideas

Market-based cash balance plans: Re-evaluating an often-overlooked retirement plan design after SECURE 2.0

These plans offer a unique opportunity for all types of plan sponsors.

By: Fidelity Investments

Updated: 4/4/2024

Key Takeaways

Market-based cash balance plans have been popular with certain employers but have been overlooked by larger companies. It's a great time to revisit this opportunity now that SECURE 2.0 has provided favorable legal clarification, making this option even more attractive.
This type of plan can offer greater retirement benefits in a tax-sheltered vehicle.
Fidelity can help you evaluate the various aspects of cash balance plan structures to help you determine which makes sense for your organization.

Get the full white paper

Market-based cash balance plans

Next steps to consider

Pension Solutions

Take a tour of Fidelity’s pension solutions, all designed to meet plan sponsors’ specific goals and needs.

Learn more

Outsourced CIO

Explore outsourced CIO solutions tailored to your needs, powered by Fidelity’s deep investment capabilities and proprietary research.

Learn more

Liability-Driven Investing

Explore Fidelity’s tailored approach to integrating liability risks into effective custom solutions.

Learn more

For important information, see the full linked content.

1132549.2.0

1EDB5EE706BB44BF9458822DB02E7646

Past performance is no guarantee of future results.

This information is intended for the sole use of institutional investors. Retail investors and any other persons who are not institutional investors should not act or rely on this information.

Unless otherwise expressly disclosed to you in writing, the information provided in this material is for educational purposes only. Any viewpoints expressed by Fidelity are not intended to be used as a primary basis for your investment decisions and are based on facts and circumstances at the point in time they are made and are not particular to you. Accordingly, nothing in this material constitutes impartial investment advice or advice in a fiduciary capacity, as defined or under the Employee Retirement Income Security Act of 1974 or the Internal Revenue Code of 1986, both as amended. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in the products or services and may receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Before making any investment decisions, you should take into account all of the particular facts and circumstances of your or your client’s individual situation and reach out to an investment professional, if applicable.

Registered investment products (including mutual funds and ETFs) and collective investment trusts managed by Fidelity Management Trust Company (FMTC) are offered by Fidelity Distributors Company LLC (FDC LLC), a registered broker-dealer. Fidelity Institutional Asset Management (FIAM) investment management services and products are managed by the Fidelity Investments companies of FIAM LLC, a U.S. registered investment adviser, or Fidelity Institutional Asset Management Trust Company, a New Hampshire trust company. FIAM products and services may be presented by FDC LLC, a non-exclusive financial intermediary affiliated with FIAM and compensated for such services.