I covered the defined benefit plan in the previous article on retirement. In this article, I’ll answer frequently asked questions about this defined benefit plan.
Posted by Michael Chapman at 12:00 PM UTC
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15 February 2010
Questions and Answers on the Defined Benefit Plan
Your Retirement Place
1 February 2010
Defined Benefit Plan
Your Retirement Place
If you’d like a retirement plan that guarantees a specified benefit level at retirement regardless of investment results, you may want to consider a defined benefit pension plan. A defined benefit plan is a qualified employer-sponsored retirement plan that is funded solely by the employer (in most cases); it’s the traditional type of pension plan. A defined benefit pension plan allows the highest potential contribution amount of any plan. These contributions are excluded from income and grow tax deferred. In addition, contributions can be deducted from business income.
Posted by Michael Chapman at 12:00 PM UTC
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