Defined Benefit Plans

• Generous contribution limits.
• Enrolled actuary determines funding levels.
• Must file annually with government.
• Employer assumes all investment risk.

Defined benefits plans provide a fixed benefit generally tied to tenure and salary for employees at retirement.  The employer bears all investment.  These plans are especially advantageous for high-income professionals who can afford the costs to both set up and administer them.

• 100% of the participant’s average compensation for his or her highest 3 consecutive years, or
• $230,000