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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.

Advantages

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

Considerations

  • 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

Securities offered through ELE Wealth Advisors, Inc., member FINRA. Advisory services offered through ELE Advisory Services, Inc. EWAI and EAS are affiliated through common ownership and control. Financial Wealth Solutions, Inc. and 1st Consumer Insurance Agency Inc. are not affiliated with EWAI or EAS.
FINRA Broker Check https://www.finra.org/compliance-tools/rule-2210-brokercheck

Financial Wealth Solutions, Inc. · 12200 East Briarwood Ave Suite 165
Centennial · CO 80112

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