Introduction Practitioners use Defined Benefit Plan compensation for many elements of administration. This article explains, at a high level, how your Defined Benefit Plan actuary and third party administrator will define and use compensation for your Defined Benefit Plan. Defined Benefit Plan Compensation The owner’s Defined Benefit Plan compensation depends on the entity type. The […]

Defined Benefit Plan Compensation

February 11, 2020

Defined Benefit Plan Compensation. What Compensation Counts?

This article has been updated for 2020. Defined Benefit Plan Due Dates Defined Benefit Plans have several deadlines. In order to receive favorable tax treatment and avoid penalties, you must meet these due dates in a timely fashion. What deadlines must you be aware of in a Defined Benefit Plan? First, you must set up […]

Defined Benefit Plan Deadline

September 30, 2019

2020 Defined Benefit Plan Deadlines. Due Dates to Set Up and Fund the Plan.

Defined Benefit Minimum Participation What is the minimum participation in a Defined Benefit Plan (“DB Plan”)? This is a common question we get from business owners. To some extent, minimum participation in a Defined Benefit Plan is addressed indirectly in the coverage requirements. However, DB Plans have an additional layer of compliance that needs to […]

Minimum Participation in a Defined Benefit Plan

April 9, 2019

Minimum Participation in a Defined Benefit Plan. What’s the Requirement?

This article has been updated for 2020. If you love baseball, the Spring Training season is a great time of year. For the die-hard fan, it’s an ideal environment to scout your team, meet the players and get autographs. Spring Training is also a reason, if you live in a colder climate, to trade mounds […]

Nondiscrimination Testing in Defined Benefit Plans

March 23, 2019

Defined Benefit Nondiscrimination Testing. A Baseball Analogy.

Which Would You Choose? Imagine someone offers you a choice. You can have a lifetime annuity of $100,000 starting now or a $200,000 lifetime annuity starting in 10 years. Which option would you choose? Why? What factors would you consider in making your decision? Perhaps you would decide based on your “gut reaction”. Or since […]

Actuarial Equivalence in Defined Benefit Plans

January 24, 2019

Actuarial Equivalence in Defined Benefit Plans. What It Is. Why It Matters.