What is a defined benefit cash balance plan? We invited our good friend Kevin Kimbrough back for another conversation to help answer that question. He explains how high-income earners can use this government-approved, tax-deductible strategy to grow retirement savings while reducing taxable income.

How Defined Benefit Cash Balance Plans Work

• Kevin explains how defined benefit cash balance plans allow high-income earners to contribute significantly more than traditional retirement plans like 401(k)s or IRAs while reducing taxable income at the same time.
• He also discusses how actuaries, CPAs, attorneys, and retirement specialists all work together to determine whether the strategy makes sense for someone’s financial situation.

Why More High-Income Earners Are Paying Attention

• Kevin shares why more physicians, business owners, and high-income professionals are exploring these plans as they look for larger tax deductions and long-term retirement planning opportunities.
• He also explains why many people, including some tax professionals, are still unfamiliar with how these strategies work.

How Life Insurance Can Be Incorporated Into The Strategy

• Kevin covers how life insurance can be incorporated into these plans to help support retirement, estate planning, and tax strategies at the same time.
• Also, he shares how some individuals use life insurance within the strategy to help create long-term family wealth and additional financial protection.

Why Flexibility Has Improved Over The Years

• Kevin explains that many people still believe these plans require rigid long-term contributions with very little flexibility.
• But modern plans can often allow business owners to adjust contributions, skip funding years, or adapt the strategy based on changing cash flow and business performance over time.

"We joke that an outgoing actuary stares at your shoes while an introverted actuary stares at their own. They may be reserved, but they’re experts when it comes to numbers." — Kevin Kimbrough

Resource

• Want more financial planning insights? Connect with Kevin Kimbrough on LinkedIn and continue the conversation.
• Check out Episode 004 with Kevin Kimbrough to learn how a policy audit could potentially save you thousands.
• Stay connected With Us - https://figtreegroup.com/

Credits

Produced by bluëmango | STUDIOS. Music by SoundsStripe. Thank you for listening!