Cash balance plans for physicians.

Physician groups are one of the core markets for cash balance plans. The attraction is the same as everywhere else: deferrals in a 401(k) stop, and partners in their 50s want a larger deductible credit. The obstacle is also the same: nurses, medical assistants, and front office are participants if they meet the plan’s age and service rules.

A design that ignores the clinical staff will fail testing or surprise the partners at funding time. Bring the census. We coordinate an independent Enrolled Actuary for the valuation; Sterling is the administrator, not the actuary. Read how staff cost works and the IRS definition of the benefit limit.

Group practices also argue about unequal credits. Partners of different ages should not be forced into identical deposits. That is a cash balance strength, described on the cash balance page and in the briefing. If the group might sell to a health system, read what happens when a plan is already open before you adopt.

PBGC coverage is not automatic and not automatically absent. Check PBGC’s coverage page with the actuary rather than assuming a professional-service exemption. Start with a census conversation.