"Here a few considerations in deciding whether to adopt a Cash Balance plan. First and foremost, an employer should consider a Cash Balance plan if it is profitable and has predictable revenue. It is a retirement plan with recurring contributions. Second, the owners or partners are generally 40 year old and earn at least $100,000 per year. Third, they want to accelerate their retirement savings by contributing more than the annual maximum of $53,000 ($59,000 if age 50 or older) to a 401(k) and profit sharing plan."