There were 5,840 cash balance plans active in 2009 (the most recent year for which IRS reporting data is available), up from 1,337 in 2001, according to Kravitz. There are now 10.5 million participants in these plans with $606 billion in total assets.

Also known as 'hybrids,' cash balance plans combine the high contribution limits of traditional defined benefit plans with the flexibility and portability of a 401(k) plan. Many business owners can double their own pre-tax retirement savings while affordably enhancing benefits for staff.

Other highlights from the 2011 National Cash Balance Research Report include:

• Small and mid-size businesses continue to drive cash balance plans growth: 82 percent of cash balance plans are in place at firms with fewer than 100 employees.
• Rapid growth despite the recession: in 2009, there was an 11 percent increase in new cash balance plans, while the overall retirement plan market remained stagnant.
• Cash balance plans enhance existing 401(k) Profit Sharing plans: 89 percent of cash balance plans are combined with a 401(k) Profit Sharing plan for optimum tax efficiency and higher benefits.
• Texas and Illinois demonstrate highest growth in cash balance plans: There was a 47 percent increase in cash balance plans in Texas and 27 percent in Illinois between 2007 and 2009. While California and New York account for 24 percent of all cash balance plans, the plans are increasingly popular across the nation.