Combo Plans Done Right: Documenting Cash Balance + 401(k) for Clean Testing
Intro
Cash Balance + 401(k) combos can deliver low- to mid-six-figure owner targets—but only if the written plan and operations are aligned. Here’s how we document so testing passes in practice, not just on paper.
Compensation and Classes
Use one compensation definition across plans when possible. Define owner/associate/staff classes consistently and mirror them in the recordkeeper’s structure.
Safe Harbor, Gateway, and Cross-Testing
Safe harbor keeps ADP/ACP quiet; gateway and cross-testing ride on the profit-sharing formula and allocation groups. We encode those formulas so combined testing runs clean.
Interest Crediting and Investment Policy
Fixed or Treasury-linked interest crediting affects funded status and expectations. We can attach a Funding & Investment Policy so actuarial, investment, and sponsor expectations match.
Top-Heavy, Eligibility, and Entry Dates
Coordinate eligibility and entry dates across plans; clarify top-heavy and key employee rules so there are no year-end surprises.
Deliverables Sponsors Can Use
Adoption agreements and plan documents (CB + 401(k))
Board resolution, SPD/SMM, dated document index
One-page “operational map” for payroll and recordkeeper
Wrap-up
Get the combo right up front. See our physician hub for examples: /cash-balance/physicians-south-florida/
Or request a combo document package: /contact
Educational content—no tax or legal advice.
