Defined benefit plans provide owners the opportunity to accumulate a substantial retirement benefit
It is a retirement plan that provides guaranteed retirement benefits to the owners and employees of a company, provided annual premium contributions have been funded. The plan may be funded with, but not limited to, life insurance and annuity contracts.
Sample Max Contribution Comparison Scenario
Scenario: Business owner age 55; No employees; Retirement age 62; Compensation $280,000; First year maximum contribution
|Plan Solution||Maximum Contribution|
|401(k) Plan||$ 19,000|
|$ 6,000 catch-up|
|Profit Sharing||$ 56,000|