Why Your CPA Hasn’t Mentioned a CB Plan & Why It’s Not a Bad Idea

If you’re a law firm partner earning a high income, chances are you have a long-standing, trusted relationship with your CPA. They’ve kept you compliant, flagged red flags, and helped you avoid costly mistakes.

So when you hear about a Cash Balance Plan (CB plan), and how it could dramatically reduce your tax bill, it’s completely reasonable to ask:

“If this was such a smart move, why hasn’t my CPA brought it up?”

That’s not a naïve question. It’s a smart one. But the answer usually has nothing to do with whether the plan is sound, and everything to do with what your CPA actually does.

This article breaks down why most CPAs don’t bring up CB plans, and why that silence isn’t a red flag. More importantly, it shows how law firm partners use the right specialists to complement their CPA, not replace them.

What Most CPAs Are Trained (and Paid) to Do

Your CPA plays a critical role in your financial life. They ensure that your numbers are accurate, your filings are complete, and your audit risk is minimized. They’re trained to see the tax code through a compliance lens because that’s their job.

However, that job typically doesn’t include designing custom retirement plans, projecting multi-year contribution limits, or running actuarial models. Most CPAs are not plan architects, and they’re not supposed to be.

In fact, many CPAs avoid recommending strategies they don’t implement themselves, not out of reluctance, but because of professional liability. If it’s outside their scope, they won’t advise on it directly.

Why Cash Balance Plans Are Outside the CPA Toolkit

Cash Balance Plans aren’t simple plug-and-play tools like a SEP IRA or 401(k). They need custom actuarial modeling, annual funding analysis, nondiscrimination testing, document updates, and ongoing compliance. That’s outside the typical scope of CPA tax prep, and stepping into that territory brings significant fiduciary risk and liability, so most CPAs leave it to specialists who have the systems and expertise already in place.

• Custom, Not Cookie-Cutter

CB plans aren’t prepackaged like SEP IRAs or 401(k)s. They require actuarial projections, employer funding schedules, and IRS compliance rules that vary by age, income, entity structure, and employee count. A well-designed CB plan maximizes tax deferral without violating IRS limits, but that kind of modeling goes well outside the scope of standard tax prep. Most CPAs lack the tools or support staff to build or manage something as tailored as this.

• High Compliance Burden

Once a CB plan is in place, it needs to be monitored and adjusted every year. Contributions must meet minimum funding standards, nondiscrimination tests must be run, and plan documents must be kept up to date with IRS rules. If any part of that process fails, the penalties can be steep. For a CPA focused on filing clean returns, taking on that level of operational and fiduciary risk is a non-starter.

• Not Familiar

CB plans operate in a niche space between defined benefit pensions and modern tax planning. Many CPAs simply haven’t encountered them often, especially if their client base isn’t made up of high-earning professionals or business owners. If they’re not confident in how the plan works or don’t have a specialist to refer to, they’re unlikely to bring it up, even if it could help you.

• No Business Incentive

There’s no financial upside for a CPA to recommend a CB plan. They don’t administer the plan, don’t earn fees from it, and don’t want to be responsible for it. In fact, suggesting a plan they can’t oversee could create extra work or liability without additional revenue. So, unless they’re proactive or connected to the right partners, it’s often easier and safer for them to stay silent.

What Smart Law Firm Partners Do Instead

Partners who get the most out of their income don’t expect one advisor to do it all. They keep their CPA and bring in a CB plan strategist to handle what falls outside the CPA’s lane.

It’s not about replacing anyone. It’s about rounding out your team with the right expertise. Your CPA is your general physician: essential, trusted, and focused on overall health. But when you need heart surgery, you don’t ask your GP to open the chest, you go to a cardiologist.

The same applies here. CB plans are highly specialized financial tools that require actuarial modeling, IRS compliance, and long-term planning to ensure optimal results. That’s not your CPA’s role, and it shouldn’t be.

Smart partners understand this and coordinate the right experts. When we come in, we don’t disrupt what’s already working. We handle the plan design, run the numbers, ensure IRS compliance, and hand off clean documentation to the CPA. Everything is built to sync—timelines, deadlines, contributions—so nothing gets missed.

How a Cash Balance Plan Works for a High-Earning Partner

A CB plan is a type of IRS-qualified retirement plan that allows business owners and partners to make much higher pre‑tax contributions than a 401(k) or SEP IRA. Contributions are based on age, income, and business structure, and the limits can exceed $200,000 per year for high earners.

Here’s how it works in practice:

you’re a 52-year-old equity partner earning $600,000 a year. Your CPA has already helped you max out your 401(k) with profit sharing, reaching about $76,500 in total tax-deferred contributions.

That’s the standard approach. But it leaves a significant amount of taxable income on the table.

With a CB plan in place, you could contribute an additional $150,000 to $200,000, depending on your specific situation. These contributions are tax-deductible to the business and grow tax-deferred.

If you’re married and file jointly, the overall tax impact can be even more favorable, especially if you also employ your spouse or split ownership in the practice. Your household income remains steady, but your taxable income drops substantially.

Your CPA doesn’t need to change or manage the plan. They simply incorporate the final contribution amount into your return—no changes to their process, no added risk. It’s a compliant, efficient way to bring more strategy to your tax planning without disrupting the team you already trust.

This is how partners surpass the limits of standard plans and start using retirement contributions as a more effective tax planning tool.

How a Cash Balance Plan Compares to Other Retirement Strategies

If you’re already contributing to a SEP IRA or 401(k), a CB plan doesn’t replace those, it builds on them. Here’s how it stacks up:

CB plans aren’t a replacement, they’re an expansion. When used correctly, they allow high-income partners to reduce taxable income well beyond the limits of conventional plans, all while staying fully compliant.

When a CPA’s Hesitation Might Be a Problem

There’s a difference between a cautious CPA and a closed-off one.

A thoughtful CPA may not bring up a CB plan, but when the idea is presented, they’ll ask intelligent questions, request documentation, and stay open to collaboration. That’s what you want. It means they’re doing their job, protecting your return while leaving room for strategy.

But if your CPA shuts down the conversation entirely, refuses to review plan options, or dismisses the idea without explanation, it’s worth paying attention. Hesitation rooted in liability is one thing. Resistance rooted in ego, unfamiliarity, or a one-size-fits-all mindset is another.

We’re not in the business of pushing partners to switch advisors. In fact, the best outcomes usually come when your CPA stays involved. But if your tax strategy has been “safe and simple” for years, and that safety is costing you six figures in missed deductions, it might be time to get a second opinion.

You’ve Got a Good CPA. Now Get a Great Plan.

If your CPA has kept you compliant and helped you avoid costly mistakes, that relationship deserves to be protected.

But when you’re earning $500,000, $700,000, or more, and still relying on the same basic strategies year after year, it’s time to ask: Is this really the best I can do?

High-earning partners who want to keep more of what they make don’t wait for their CPA to change lanes; they bring in the right specialist to add what’s missing.

CB plans don’t compete with CPAs. They complement them. You get IRS-compliant structure, higher deductions, and clear documentation, without overloading your CPA or replacing anyone on your team.

When you’re earning more, your strategy should work harder. This is where that starts.

Disclosure: The information provided on this website is for general informational and educational purposes only and is not intended as legal, tax, or investment advice. Actual tax savings will vary based on your individual circumstances, including filing status, income level, existing retirement plans, and other deductions. Cash Balance Plans and other retirement strategies must be carefully structured and administered to comply with IRS regulations. You should consult with a qualified tax advisor, financial planner, and/or pension specialist before implementing any strategy discussed here.