First-Year Contributions by Age

Participant with $215,000 + Salary
  40 45 50 55 60
401(k) 54000 54000 60000 60000 60000
Classic DB 60000 75000 100000 150000 200000
412(e)(3) 110000 150000 200000 235000 300000

THE BENEFITS OF A DEFINED BENEFIT PLAN DESIGN

PROSPECT SUITABILITY

A defined benefit plan is the only tax-qualified retirement plan that allows a participant to accrue a benefit that has a value exceeding $54,000 in 2017. However, because plan contributions are required once a benefit is accrued, it is very important to make certain that this type of plan is suitable for your client. The ideal plan sponsor:

  • Is a "Baby-boomer" (Age 45 – 65)
  • Has stable income and profitability
  • Is older than most other employees (if any)
  • Can make a multi-year commitment to increased contributions
  • THREE PLAN DESIGN ALTERNATIVES

    Once you have determined whether or not you have a good prospect, the next step is to review the plan design options available. Security Mutual Life and SAI remain at the forefront of defined benefit design and offer comprehensive service for all three major options. The chart below summarizes the markets for each alternative:

      412(e)(3)
    Fully Insured
    Plans
    Traditional
    Defined Benefit
    Plans
    Cash Balance
    Plans
    # of Employees 1-5 1-9 5-50
    Risk Tolerance Low Low/High Modest
    Plan Funding Fixed Annuity
    Whole Life Insurance
    Guaranteed Investment Contracts
    Fixed Annuity
    Universal Life
    Whole Life
    Guaranteed Investment Contracts
    Universal Life

    GET A DEFINED BENEFIT DESIGN STUDY

    Before we can help you review plan design options, we need to know three basic things:

  • Who is there?
  • What do they have now?
  • What are the goals and/or the budget?
  • Use our "Form Fillable" Fact Finder to communicate your case to our qualified plans design team.

    The Design Team at Security Mutual Life provides comprehensive support to appointed representatives at no cost.

    If you are not yet contracted with us but would like to discuss options please click here.

    Dowload our Fact Finder

    DOWNLOAD SECTION

    Security Mutual Life offers a variety of marketing materials for qualified plans.

    Please click on one of the links below to view our marketing materials.

    412(e)(3) PLANS

    Security Mutual Life offers FAQ's, 10 Reasons..., Product Pieces and more related to our 412(e)(3) program. To view the various flyers, brochures, and more, please click on the link above.

    DEFINED BENEFIT PLANS

    Security Mutual Life offers FAQ's, 10 Reasons..., Product Pieces and more related to our Defined Benefit program. To view the various flyers, brochures, and more, please click on the link above.

    CASH BALANCE PLANS

    Security Mutual Life offers Client, Agent, Product Pieces and more related to our Cash Balance program. To view the various flyers, brochures, and more, please click on the link above.

    SAI INSTALLATION FORMS

    Download one of the comprehensive SAI installation packages that contain the necessary forms to set up a new qualified plan. Additional services are also offered as requested on a fee-for-service basis.

    Additional Marketing Materials

    PLAN LIMITS & "P's & Q's"

    You have pension questions, we have answers. View the 2017 plan limits, get answers to your pension questions.

    LIFE INSURANCE INFORMATION & SALES CONCEPTS

    Learn about Security Mutual Life's unisex life insurance products offered in qualified plans, as well as sales concepts using those products.