DR-VIP vs. Cash Balance Plans

Cash balance plans and other defined benefit (DB) plans offer successful business owners opportunities to save in taxes and create retirement income streams for plan participants. However, cash balance plans have limitations and risks that Direct Recognition Variable Investment Plans (DR-VIP) don’t have. There is a way to avoid being trapped by cash balance plan limitations; by terminating a cash balance plan and starting up a DR-VIP, participants can gain access to their investments before retirement age and capture the opportunity to accumulate even more. Cherry Bekaert Benefits Consulting’s business-smart solution for mitigating plan sponsor liabilities, putting plan assets under participant control and continuing tax deductible contributions.


Plan Features DR-VIP Cash Balance Plans
Maximum Contribution Per Person $300,000 +/- $300,000 +/-
Tax Deductible Contributions
Tax Deferred Accumulations
Contribution Certainty
Optional Auto-Adjust Contributions
Mitigate Underfunding Liability
Mitigate Overfunding
Direct Recognition
No Crediting Limitations
Daily Valuation
Fully Automated



To learn more about Direct Recognition Variable Investment Plans, please visit our DR-VIP page or contact Kyle Frigon at 404.733.3456 or kfrigon@cherrybekaertbenefits.com.

Cherry Bekaert Benefits Consulting, LLC is a Chernoff Diamond Affiliate. Chernoff Diamond & Co., LLC is a Managing Member of Cherry Bekaert Benefits Consulting. Chernoff Diamond & Co., LLC offers Investment Advisory Services through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Check the background of this Firm and/or investment professional on FINRA's BrokerCheck. Chernoff Diamond & Co., LLC is independently owned and operated. Chernoff Diamond & Co., LLC, is a member of M Financial Group. Please visit mfin.com/DisclosureStatement.htm for further details involving this relationship.

Chernoff Diamond and their registered representatives are currently licensed to sell variable life and annuity products, as well as other securities products, in the states of California (#0782382, #0A04009), Connecticut, Florida, Georgia, Kentucky, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Virginia and Washington DC. Residents of other states should consult with a local registered representative for securities products.

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