This article has been updated for 2024. Contribution backfilling is a powerful strategy that business owners may use in a variety of situations. This article will provide Defined Benefit Plan context for understanding, explain the concept of contribution backfilling, and examine several situations where backfilling in a Defined Benefit Plan may be beneficial. Context: Defined […]

Backfilling a Defined Benefit Plan

Defined Benefit Strategy: Contribution Backfilling

This article has been updated for 2024. Defined Benefit Plan Target Return Rate What investment return should I target in a Defined Benefit Plan? Financial advisors ask us this question quite a bit. While we cannot give investment advice, we will provide you with the information needed to arrive at your own conclusion. Specifically, we […]

Defined Benefit Plan Investment Return Target

Investment Return Target for a Defined Benefit Plan. What’s the Right Answer?

This article has been updated for 2024. 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 […]

Credit Balances

Credit Balances in a Defined Benefit Plan. Getting Credit for Past Contributions.