Traditional Defined Benefit

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.


  • Larger contributions for older participants
  • Tax deductions
  • Availability of life insurance with tax-deductible premiums


  • Annual contributions/premiums are required
  • Investment experience impact contributions

Sample Max Contribution Comparison Scenario

Scenario: Business owner age 55; No employees; Retirement age 62; Compensation $280,000; First year maximum contribution

Plan SolutionMaximum Contribution
401(k) Plan$ 19,000
 $   6,000 catch-up 
Profit Sharing$ 56,000
Defined Benefit$236,042