Defined Benefit plans provide a fixed, pre-established benefit for employees at retirement. Substantial benefits can be provided and accrued within a short period of time. Employers can generally contribute (and therefore deduct) more each year than in defined contribution plans.
Defined Benefit Plans
A company retirement plan in which a retired employee receives a specific amount based on salary history and years of service and in which the employer bears the investment risk.
A retired employee receives a specific amount based on salary history and years of service.
The Latest News
Defined Benefit Plans are Alive and Well
Posted on Apr 17, 2019
You’ve likely heard about a decline in the number of Defined Benefit plans. But the reality is a DB plan is still a great tax and retirement savings vehicle that can produce superior retirement outcomes for the right client. Are you one? »
The Cost of Aging: Are You Ready?
Posted on Apr 3, 2019
Navigating the maze of long term care options can be confusing, but planning far in advance, ideally with the help of professionals such as elder law attorneys, financial advisors, and geriatric case managers, can prevent a great deal of hardship later on. »
Cash Balance Plans Allow Six Figure Annual Contributions
Posted on Mar 28, 2019
Most people can contribute to their 401(k) without worrying about exceeding the annual contribution limit. If you’re under 50 years old, that’s $19,000 a year. If you’re 50 or older, it’s $25,000. But a small and important segment of the population has the ability– and desire –to contribute significantly more to their retirement account. If you’re looking to save even more on taxes and put up to six figures per year into your retirement account, a Cash Balance plan may be the right choice. »