Cash Balance plan

Dan Kravitz Discusses Strategic Plan Terminations

In a recent article published by ​PLANSPONSOR, Dan Kravitz, president of Kravitz, Inc., and Chris Pitman, an expert plan termination consultant with the firm,​ ​​​​​​define the concept of strategic plan termination—what the pros and cons are, and what an employer’s responsibilities entail under IRS and PBGC regulations. “If an employer has the right goals and follows the right process​, strategic plan terminations can be a win-win for the company and for employees,​”​ said the pair.


Dan Kravitz Explains How Cash Balance Plans Can Help Small Employers Benefit From Tax Reform

In an article​ published by Employee Benefit News, Dan​​ Kravitz, head of Kravitz, discusses how ​​cash balance plans ​can help small employers benefit from tax reform.​​ Tax reform impacts pass through entities, ​companies where income is passed through to the business owners, so ​it’s important for these workers to understand ​which deductions are available to them. “For most small business ow​ners as pass-through entities, profits are passed through to owners and taxed at individual rates rather than at corporate rates,” Kravitz says. ​


More Advisors Turn to Cash Balance Plans

recent article​ published by FinancialPlanning discusses ​​why advisors have been turning to cash balance plans, featuring data from the Kravitz 2017 Cash Balance Research Report​. ​Cash balance plans allow ​​workers more flexibility with their contributions, while decreasing their taxes. ​According to the Kravitz report, ​cash balance plans increased by 1,035% between 2001 and 2014 to 15,178 plans with assets of more than $1 trillion​.


Dan Kravitz Discusses the Growth of Cash Balance Plans

Dan Kravitz, head of Kravitz, Inc.,​ discussed the grow​​th of Cash Balance plans in an article ​published by Employee Benefit News. ​Kravitz ​​​noted that cash balance plans grew by 17% in 2015. ​“The investment risk is borne by the employer but they are not subject to 401(k) limits,” he adds. “So owners, particularly older owners, can contribute a lot more to a cash balance plan than they can contribute to a 401(k) profit-sharing plan.”​​


Cash Balance Retirement Plans Surge 17%, Plan Assets Rise to $1.1T

Tax advantages and the need to catch up on delayed retirement savings make Cash Balance the fastest growing sector of the retirement plan market 

Los Angeles, CA – Kravitz, Inc., an Ascensus company, today released the 2017 National Cash Balance Research Report, showing a 17% net increase in the number of new Cash Balance retirement plans compared with a 3% increase in new 401(k) plans. This marks more than a decade of double-digit annual growth in the Cash Balance plan market, concurrent with the decline of traditional defined benefit plans. Cash Balance plans now make up 34% of all defined benefit plans, up from just 2.9% in 2001.

There were 17,812 Cash Balance plans active in 2015, the most recent year for which complete IRS reporting data is available. This 17% year-over-year increase surpassed industry projections and significantly outpaced the 401(k) market. Plan sponsors made a record-setting $29.3 billion in Cash Balance contributions in 2015, with total plan assets rising to $1.1 trillion.

“Cash Balance plans offer considerable advantages for employers, including the opportunity to double or triple tax-deferred retirement savings,” said Dan Kravitz, head of Kravitz. “Cash Balance plans are also very appealing to employees, and can help companies attract top talent in a tight labor market.”

Also known as “hybrid” plans, Cash Balance plans combine the high contribution limits of traditional defined benefit plans with the flexibility and portability of a 401(k).

Key findings from the 2017 National Cash Balance Research Report:

  • Increasing diversity of companies adopting Cash Balance plans: while medical/dental groups and law firms still make up close to half the market, Cash Balance plans are becoming increasingly popular across the business world, from the technology sector to retail and manufacturing.
  • Small business continues driving Cash Balance growth: 92% of Cash Balance Plans are in place at firms with fewer than 100 employees.
  • Companies more than double contributions to employee retirement savings when adding a Cash Balance plan:the average employer contribution to staff retirement accounts is 6.6% of pay in companies with both Cash Balance and 401(k) plans, versus 3.7% of pay in firms with 401(k) alone.
  • IRS regulations allowing broader Cash Balance investment options have accelerated plan growth: the ‘Actual Rate of Return’ option and other new investment choices approved in the 2010 and 2014 Cash Balance regulations made plans more flexible for employers and removed certain funding issues. The number of large plans using Actual Rate of Return has increased almost 20%.

These and other highlights of the 2017 National Cash Balance Research Report will be discussed in an upcoming Cash Balance Outlook 2017 webcast led by Dan Kravitz on Tuesday, September 12 at 10 a.m. Pacific. Registration is free and open to anyone interested in learning more about Cash Balance Plans.

Download the 2017 National Cash Balance Research Report here.

Register for the Cash Balance Outlook 2017 webinar here.

For more information, call Dan Kravitz at 818-379-6162 and visit www.CashBalanceDesign.com.

 

About Kravitz
Since 1977, Kravitz, an Ascensus company, has delivered the latest in design, administration, and management of corporate retirement plans. The company designed its first Cash Balance plan in 1989. Today Kravitz, Inc. administers over 1,300 plans, including more than 800 Cash Balance plans, helping over 150,000 people retire successfully. Headquartered in Los Angeles, the company has offices in New York, Chicago and Atlanta, with satellite offices in 11 other states. Kravitz was acquired by Ascensus, Inc. in 2017. Visit CashBalanceDesign.com

 

About Ascensus
Ascensus helps more than 7 million Americans save for the future—retirement, college, and healthcare—through technology-enabled solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of asset managers, banks, credit unions, state governments, financial professionals, employers, and individuals. Ascensus supports approximately 50,000 retirement plans, more than 4 million 529 college savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.5 million IRAs and health savings accounts. As of June 30, 2017, Ascensus had over $155 billion in total assets under administration. For more information about Ascensus, visit ascensus.com.


Ascensus Announces Completion of Kravitz, Inc. Acquisition

Firm Advances Growth Strategy While Enhancing Cash Balance Capabilities

 

Dresher, PA—Ascensus, a technology and service provider that helps more than 7 million Americans save for the future, announced that it has completed the acquisition of Kravitz, Inc. that was previously announced on June 6, 2017. As a result of the acquisition, Ascensus will serve approximately 50,000 retirement plans.

Kravitz, Inc. is a retirement administration firm and Cash Balance specialist focused on bringing its clients the latest in the design, administration, and management of corporate retirement plans. As part of the deal, Ascensus also acquired Kravitz Back Office Solutions, which delivers private-label actuarial services to third-party administrators across the country to help them grow and succeed with Cash Balance plans. Not included in the deal were Kravitz Investment Services, Inc., a registered investment advisor that supports Cash Balance investments, and the Payden/Kravitz Cash Balance Plan Fund, a mutual fund designed exclusively for Cash Balance retirement plans.

“The addition of Kravitz to the Ascensus family of companies represents a significant step for our growth strategy,” says Raghav Nandagopal, Ascensus’ executive vice president of corporate development and M&A. “We are aggressively pursuing acquisition opportunities not only in our core markets of retirement and college savings solutions, but also within natural adjacencies like health solutions, benefits administration, and other areas. This will help us to meet our goal of closing at least 8 to 10 new acquisitions per year for the foreseeable future.”

“Over the years, Kravitz has worked hard to build a reputation that has made their name synonymous with Cash Balance expertise,” states Shannon Kelly, Ascensus’ president of retirement. “Bringing this expertise into the fold—along with Kravitz’s dedicated team of associates—allows Ascensus to broaden our retirement offerings so that we can help even more Americans save for the future.”

 

About Ascensus

Ascensus helps more than 7 million Americans save for the future—retirement, college, and healthcare—through technology and service solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of banks, credit unions, states, governments, financial professionals, employers, and individuals. Ascensus supports over 50,000 retirement plans, more than 4 million 529 college savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.5 million IRAs and health savings accounts. For more information about Ascensus, visit www.ascensus.com.

View career opportunities at careers.ascensus.com or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.


Ascensus Announces Acquisition of Kravitz, Inc.

Addition of Cash Balance Market Leader Fuels Continued Company Growth

Dresher, PA — Ascensus, a service and technology provider that helps more than 7 million Americans save for the future, has announced the acquisition of independently owned Kravitz, Inc., a retirement administration firm and Cash Balance specialist focused on bringing its clients the latest in the design, administration, and management of corporate retirement plans. As part of the deal, Ascensus also acquired Kravitz Back Office Solutions, which delivers private-label actuarial services to third-party administrators across the country to help them grow and succeed with cash balance plans. Kravitz Investment Services, Inc., a registered investment advisor that supports cash balance investments, was not included in the deal.

Kravitz, founded in 1977, designed its first Cash Balance plan in 1989 and has since grown into the nation’s Cash Balance leader, helping more than 125,000 Americans retire with innovative, tax-efficient retirement plans. The firm offers extensive training, education, and support on Cash Balance plans to its clients and an extensive network of financial advisors and third-party administrator partners. It employs more than 85 individuals and services more than 1,400 clients with retirement plans. As a result of the acquisition, Ascensus will serve approximately 50,000 retirement plans. Kravitz will maintain its focus on Cash Balance plans, with Dan Kravitz continuing in a senior leadership role.

“Kravitz is renowned for its Cash Balance plan expertise, market leadership, and client focus—we’re excited for its team of actuaries and retirement plan professionals to join the Ascensus family,” states Shannon Kelly, Ascensus’ president of retirement. “Cash Balance plans are sophisticated and complex retirement plans that require a superior level of actuarial acumen; under Dan’s ongoing leadership, we anticipate extending our company’s growth into the mid-market segment.”

“The Kravitz team is looking forward to becoming part of Ascensus and continuing to help our clients save for a more secure retirement,” said Kravitz. “Our clients, employees, and industry partners can expect us to keep providing state-of-the-art plan design and expert administration while remaining dedicated to our values of innovation, accountability, and integrity.”

 

About Ascensus
Ascensus helps more than 7 million Americans save for the future—retirement, college, and healthcare—through service and technology solutions. With more than 35 years of experience, the firm offers tailored solutions that meet the needs of banks, credit unions, states, governments, financial professionals, employers, and individuals. Ascensus supports over 50,000 retirement plans, more than 4 million 529 college savings accounts, and a growing number of ABLE savings accounts. It also administers more than 1.5 million IRAs and health savings accounts. For more information about Ascensus, visit www.ascensus.com.

View career opportunities at careers.ascensus.com or on LinkedIn at linkedin.com/company/ascensus. For the latest company news, follow @AscensusInc on Twitter.