How staff cost changes a cash balance plan.

Owners ask what percent of the contribution they keep. Honest firms answer: it depends on ages, pay, and hours, and the answer is certified after testing. A two-doctor practice with a small clinical staff is a different math problem from a consultancy with one assistant, which is different again from a spouse-only S corporation.

FuturePlan’s research has long shown that medical and dental groups are a large share of cash balance plans, and that small employers dominate the count. That does not mean every practice “keeps 90 percent.” Tiered pay credits and a paired 401(k) are how designers try to keep staff benefits meaningful and owner credits larger. The test still has to pass.

What we need before a number

• Names or IDs, ages or birth dates, hours, and W-2 pay for owners and staff.
• Who might be hired in the next year. A plan built on last year’s roster breaks when you hire. The briefing covers that pattern.
• Entity type and which family members are on payroll.

Compensation above the annual cap — $360,000 in 2026 — does not all count. See the IRS COLA table and our limits page. Industry versions: physicians, dentists, law firms, consultants. The photo on this page is this page’s only image.