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

There are good reasons why market-based cash balance plans have been embraced by professional partnerships and law firms. But these plans offer a unique opportunity that shouldn't be overlooked by other employers. And SECURE 2.0 has eliminated many of the constraints that had held employers back from adopting these.

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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.

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