Cash Balance Plans
Cash balance plans are hybrid plans that combine the guarantee of traditional employer-provided defined benefit plans with the ease of understanding defined contribution plans. The cash balance plans address two limitations of traditional defined benefit plans:

Traditional defined benefit plans do not usually accrue significant benefits for younger employees, making it hard to attract new employees who are more mobile and not as likely to remain until retirement age.

Cash balance plans make it easier for employers to budget, project, and manage plan expenses and costs from year to year.

EGTRRA Cash Balance Plan

To meet the demand for this plan, McKay Hochman is offering the plan through its Internet DOCMAN® program. The plan was prepared by Brucker & Morra (A Professional Corporation), with input by several leading actuaries, including Jeff Hartmann and Louis Kravitz of Louis Kravitz & Associates, Inc.; Rick Block of Block Consulting Actuaries, Inc.; and Norman Levinrad of Summit Benefit & Actuarial Services, Inc.

Availability on 401(k) Portal
The plan is available to you on the McKay Hochman Internet DOCMAN® portal www.401kportal.com, for your easy access and plan preparation. Earliest submissions not required until January 31, 2007.

Find out more!
For more information on the EGTRRA Cash Balance Plan Document system, please contact us by phone at 973-492-1880 or by e-mail at info@mhco.com.

Key features of the plan include:

• All plan and cash balance specifications located in two sections rather than scattered throughout the document, making it easy for actuaries and plan administrators to find and identify the specifications.

• Allows for the offset of benefits and contributions under another plan maintained by the employer.

• Allows for several individual cash balance groups with different formulas and flexibility in actuarial assumptions.

• Allows for a Section 414(k) account at Normal Retirement Age.

• Includes an EGTRRA summary plan description with cash balance explanation.

• Complies with all provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001.

• Complies with all other law provisions that are required to be adopted for continued qualification of individually designed plans, such as cash balance plans, during the EGTRRA compliance period.

• The summary plan description permits the contribution formulas to be shown as separate exhibits for each group attached to the SPD or show them altogether in the SPD.