| Business Succession and Cash Balance Pension Plans
One of the perennial problems facing businesses or professional practices is the problem of how to facilitate the purchase of the business or practice by younger family members or younger professionals.
One neglected area which bears consideration is the use of a qualified plan. The classic vehicle has been the Employee Stock Ownership Plan (ESOP), but a defined benefit pension plan has some unique characteristics which may prove advantageous.
Although technically any type of defined benefit plan could potentially achieve such results, the type of plan commonly used in these situations is a hybrid plan design called a "Cash Balance" Plan.
To learn more about how a defined benefit plan, specifically a Cash Balance Plan, can aid in the successful transition of a business, read this article by Dale Vlasek of McDonald Hopkins.
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