This article has been updated for 2025. Introduction What is the definition of a Defined Benefit Plan? How do they function? Are they similar to other retirement plans? We will answer these and other questions in this article. Defined Benefit Plan Definition Defined Benefit Plans are retirement plans. Unlike Defined Contribution Plans, benefits are not […]
This article has been updated for 2025. Can you rollover a Defined Benefit Plan distribution to an IRA? Yes, you can, subject to the specifics below. Note that these rules apply to both traditional Defined Benefit Plan rollovers and Cash Balance Plan rollovers. Background: Defined Benefit Plan Rollover to an IRA When a participant separates […]
This article has been updated for 2025. How much is the lifetime limit for a Defined Benefit Plan? Many business owners, financial advisors, and CPAs ask us this question. Before we go any further, let’s define what we mean by a lifetime limit. Simply put, it is the maximum lump sum distribution that can be […]
This article has been updated for 2025. The Defined Benefit Plan Actuary In general, if you have a Defined Benefit Plan or Cash Balance Plan, you will need an actuary. Being a Defined Benefit Plan, or pension, actuary is a specialty that requires significant education, skill, and continuing education. What is an actuary and what […]
This article has been updated for 2025. If you have a Solo 401(k), you may encounter an interesting situation. First, as a part of maintaining a 401(k) Plan, you may need to file Form 5500-EZ. However, you will likely find that your financial provider does not offer this filing as a service. It’s not that […]
This article has been updated for 2025. 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 […]
This article has been updated for 2025. 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 […]
This article has been updated for 2025. Defined Benefit Plan Quarterly Contributions Defined Benefit Plans generally require contributions each year. In some instances, required contributions can be paid all at once. Other times, deposits must be made quarterly. In this article, we will answer common questions regarding quarterly contributions. For example, in what situations are […]
This article has been updated for 2025. Defined Benefit Plan Credit Balances A Defined Benefit Plan (“DB Plan”) is a type of retirement plan that allows for significant tax-deductible contributions. In fact, for a high-income business owner, allowable contributions can be as high as $100k to $250k+ per year. However, Defined Benefit Plan contributions are not […]
