DB/DC Combo Plan Overview:
Who Can Offer This Plan:
Any size business.
Allows employers to contribute more than other retirement plans. Allows employers to provide substantial predictable, retirement benefits based on a formula in the plan. Can produce a substantial retirement fund in a few years and is appropriate for employers who can make contributions based on actuarial calculations of the amounts necessary to pay the promised benefit.
Higher than defined contribution plans.
Generally employer contributions.
Annual Contribution Limits:
Employer's maximum and minimum contribution is determined actuarially and must be sufficient to pay the participant's benefits as they come due in future years.
Generally not a feature of the plan.
Immediate or may vest over years of service not to exceed seven years.
Defined Benefit Plans are not included in the Select a Plan Section. The gathering of information necessary to help you determine the appropriateness of this plan for your business falls outside the scope of this site. We encourage you, however, to discuss with your accountant or other financial advisor whether a defined benefit plan would be a good option for your employees. To learn more about defined benefit plans please visit http://www.dol.gov/elaws/pwbaplan.htm.