| As a trusted advisor, we stand ready to guide Plan Sponsors through the complexities and everchanging landscape of pension plans. Below find valuable updates from our dedicated Defined Benefit Business Council. Cash Balance Plans In November, IBM made huge news in the retirement community by ending their 401(k) company match and instead reopening their pension plan. For years, IBM has made matching contributions into its employees’ 401(k) accounts. Starting in 2024, however, it will instead fund a “Retirement Benefits Account” for each employee by reopening their pension as a cash balance plan.1 Cash balance plans are gaining steam across the industry as a powerful, qualified savings vehicles that blends the best qualities of traditional pensions and 401(k) plans for both plan participants and Plan Sponsors.2 Find out why. Reach out to Fiducient Advisors to discuss the benefits of cash balance plans and how to utilize these unique plans within your organization. Read more of our newsletter here… |
Sources: 1https://www.pionline.com/pension-funds/ibm-shows-how-companies-can-use-surplus-reopen-pension-plans.
2“Is renewed interest in DB plans real, or just a pipe dream?”, Pensions & Investments (pionline.com); November 20,2023.
