First-Year Contributions by Age
Participant with $230,000 + Salary
THE BENEFITS OF A DEFINED BENEFIT PLAN DESIGN
A defined benefit plan is the only tax-qualified retirement plan that allows a participant to accrue a benefit that has a value exceeding $57,000 in 2020. 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:
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.
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You have pension questions, we have answers. View the 2018 plan limits, get answers to your pension questions.