Cash Balance Min and Max?

[retbenser]

Is the Cash Balance "compensation credit" fixed by formula per plan document?

Or is there a "minimum" and "maximum" contribution amounts that allows flexibility for plan sponsor (just like traditional DB plan)?

[abanky]

Yes, and more times than not yes.

Important to note, that the hypothetical contribution (or Hypothetical account balance) is different than the Target Normal Cost (or Funding Target)

[Mike Preston]

What does one have to do with the other?

[SoCalActuary]

Is the Cash Balance "compensation credit" fixed by formula per plan document?

Or is there a "minimum" and "maximum" contribution amounts that allows flexibility for plan sponsor (just like traditional DB plan)?

You may have been sold the CB 101 version of how these plans work. For simplifying purposes, plan sponsors are often told that the contribution should be the "Compensation credit".

When you get your second training session in CB rules, you will find that they are defined benefit plans, subject to the full range of IRC 430 rules, and IRC 404 deduction ranges.

The complete answer to both of your questions is "Yes", but now you need to discuss the details with your actuary who understands the rest of the story.