The New and Improved Defined Retirement Plan

By | Comments (0) | Trackbacks (0)

Are you ready for a new type of retirement plan? The defined benefit 401(k) plan–or DB(k), for short–will finally be available in 2010. This hybrid plan was initially authorized by the Pension Protection Act of 2006.

Background: Defined benefit plans, like traditional pension plans, have declined in popularity among business owners in recent years, primarily because the plans are completely funded by the employer. Annual contributions based on actuarial computations involving years of service and salary are set aside for employees. For 2010, the contributions cannot fund an annual retirement benefit exceeding $195,000 (see box below for retirement plan limits for 2009 and 2010).

Learn more about Small Business Retirement Planning And DB(K)





Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically each day to your feed reader.

Tags:
Topics: General

No comments yet.

Leave a comment

Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

(required)

(required)