How the Middle Class Misses Out on Cash Balance Pension Plans

Episode 58 of Wealth Distribution with Fexingo turns to an overlooked retirement tool: the cash balance pension plan. Lucas and Luna explain why these hybrid plans—which combine the tax advantages of a defined-benefit pension with the portability of a 401(k)—are almost exclusively used by high-income professionals. They walk through how a typical small business owner can shelter up to $350,000 per year in a cash balance plan, while the middle class, stuck with 401(k) limits of $23,000, falls further behind on retirement savings. The hosts also discuss why recent legislation and rising interest rates have made cash balance plans more attractive, yet most middle-class workers can't access them. A must-listen for anyone wondering why the retirement wealth gap keeps widening. #CashBalancePension #RetirementPlanning #401k #DefinedBenefit #WealthGap #SmallBusinessOwner #TaxAdvantaged #MiddleClass #RetirementSavings #PensionPlans #SECUREAct #HighIncome #EmployeeBenefits #FinancialLiteracy #WealthDistribution #FexingoBusiness #BusinessPodcast #Economics Keep every episode free: buymeacoffee.com/fexingo