Retirement & pension plan design

Cash balance plan census & testing

Enter your census, shape the plan design, and see how coverage, participation, top-heavy, and nondiscrimination testing shape up � before you bring it to your actuary.

�employees in census
2026plan year
4tests previewed
  1. 1

    Enter your census

    Add each employee's birthdate, hire date, pay, ownership, and role.

  2. 2

    Set the plan design

    Choose pay credit percentages, the interest crediting rate, and testing assumptions.

  3. 3

    Review the results

    Coverage, participation, top-heavy, and nondiscrimination indicators update instantly.

Spousal & survivor rights apply

A cash balance plan is a defined benefit pension plan, so it carries the same federal spousal protections as any other pension. Married participants' benefits are normally payable as a joint & survivor annuity, and a spouse's written, notarized consent is required to pay a different form or name a different beneficiary � regardless of what a participant's hypothetical account balance shows. Confirm consent procedures with plan counsel or your TPA before distributions are processed.

Plan design & testing assumptions

These apply plan-wide. The three dollar thresholds populate automatically from the plan year below; confirm the amounts in effect for your plan year before relying on results.

%

The rate hypothetical accounts credit each year � fixed, or tied to an index in the plan document.

yrs

As defined in the plan document � often 62 or 65.

%

Used only to estimate equivalent benefit accrual rates below. Must be reasonable for the plan � set by your actuary.

$

IRC �414(q)(1)(B). Indexed for inflation � populates from the plan year above; edit to test a different figure.

$

IRC �416(i)(1)(A)(i). Indexed for inflation � populates from the plan year above; edit to test a different figure.

$

IRC �416(i)(1)(A)(ii). Fixed by statute at $150,000 � not indexed for inflation.

Census

Computed columns (age, service, pay credit $, balance, HCE/key status, and estimated EBAR) are shaded and update as you type.

? Swipe sideways to see every column � the name column stays put.

Employee Birthdate Hire date Ageat 12/31 Serviceyears Compensation Owner % Officer Excluded Benefiting Pay credit % Pay credit $ Prior balance Ending balance HCE Key EE Est. EBARat NRA

"Excluded" means statutorily excludable � not yet meeting the plan's age/service eligibility, a union employee under a plan not covering them, or a nonresident alien with no U.S.-source income. "Est. EBAR" projects this year's pay credit alone to normal retirement age at the testing interest rate above (no mortality discount) and states it as a percentage of current pay � see Methodology below.

Testing results

Based on the census and assumptions above, as of December 31 of the plan year.

Total in census0
Excluded0
HCEs0
NHCEs0
Key employees0
IRC �410(b)

Coverage � ratio percentage test

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ratio percentage (70% safe harbor)
NHCEs benefiting
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HCEs benefiting
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IRC �401(a)(26)

Minimum participation

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employees benefiting
Required (lesser of 50 or 40%)
�
Nonexcludable employees
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IRC �416

Top-heavy status

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of hypothetical account value held by key employees
Key employee balances
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Total plan balances
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IRC �401(a)(4) � preliminary

Nondiscrimination in amount

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avg. NHCE est. EBAR � avg. HCE est. EBAR
Avg. NHCE pay credit %
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Avg. HCE pay credit %
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Avg. NHCE est. EBAR
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Avg. HCE est. EBAR
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Methodology & what this tool doesn't do

What's calculated directly

  • Age and service, counted in full years to December 31 of the plan year.
  • HCE status: a greater-than-5% owner, or compensation above the threshold above.
  • Key employee status: a greater-than-5% owner; a greater-than-1% owner paid over the fixed $150,000 threshold; or an officer paid over the officer threshold.
  • The �410(b) ratio percentage test and the �401(a)(26) minimum participation test, both from your census counts directly.
  • The �416 top-heavy ratio, from hypothetical account balances (prior balance credited with interest, plus this year's pay credit).

Where this tool simplifies

  • Nondiscrimination in amount is estimated, not certified. A real general test converts each accrual to an equivalent benefit using IRS-prescribed mortality and rate-group analysis � this tool skips mortality and compares simple averages instead.
  • Compensation is used as its own "prior year" figure for HCE/key testing rather than tracking a separate lookback year.
  • If coverage fails the 70% ratio test, a plan may still pass the Average Benefits Test � that analysis isn't performed here.
  • Top-heavy minimum-benefit amounts (2% of average pay per year of service, up to 20%) aren't computed per employee.
  • The three IRS dollar thresholds are on file for plan years 2020�2026 and populate automatically from the plan year field. For a plan year beyond that, the most recently published figures carry forward with an on-screen note until this tool is updated � the IRS typically releases the next year's numbers each November, so confirm the correct amounts once they're out.