What happens if a Cash Balance Plan becomes underfunded?

This is generally not a problem since the owner, who is getting a large portion of the benefits, can take a cutback and still realize a large portion of the total. For example, if a plan has benefits of $900,000 for the owner and $100,000 for others, but assets of only $850,000, then the owner would get $750,000 ($850,000-$100,000), which is still not a bad result. Normally, if a plan is going to be underfunded, the plan can be frozen while the owner catches up.