Most people think of Defined Benefit Plans as old-school plans that no one uses anymore. Because of a relatively recent tax law change, these plans are back and may just be what you are looking for to build your wealth for retirement.
Could Be Great For Late Starters!
Generally, a Defined Benefit Plan allows for much bigger deductions for employees who are getting a late start on their retirement planning (or who have lost their plan assets in a divorce or other lawsuit).
For example, if you are 50-year old and make over $210,000 per year and you are just starting to make contributions to a newly formed Defined Benefit Plan — you could make up to $125,000 of tax deductible contributions per year.
Cash Balance Plans
If you think Defined Benefit Plans sound interesting, you need to learn about the even more powerful and flexible Cash Balance Plan.
News & Education
Combined 401(k)/Profit Sharing Plans
Combined 401(k)/Profit Sharing Plan
A combined 401(k)/Profit Sharing Plan allows an employee/owner to “max out” the pension plan contributions; although, it is very painful to “max out” due to the amount of money required for the employees to be funded.