This article has been updated for 2025. Can you rollover a Defined Benefit Pension Plan to an IRA, 401(k), or SEP? Yes, most participants in small Defined Benefit or Cash Balance Plans can roll their benefit into one of these qualified retirement accounts, subject to IRS rules and plan provisions. In contrast, most large corporate […]
This article has been updated for 2025. Table of Contents Introduction Defined Benefit & Cash Balance Plan Lifetime Limit Calculator What Is the Lifetime Limit Lifetime Limit Depends on Age at Payout Lifetime Limit Depends on Average Compensation Defined Benefit Lifetime Limit Is Prorated Service Impact of Interest Rates and Mortality Tables Your Spouse and […]
This article has been updated for 2025. The Defined Benefit Plan Actuary If you sponsor a Defined Benefit Plan or a Cash Balance Plan, you’ll need a qualified actuary. A Defined Benefit actuary (sometimes called a pension actuary) ensures your plan is properly designed, funded, and compliant with IRS and Department of Labor rules. In […]
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. Maximize Tax Savings and Build Retirement Wealth with Pension Plans for Self-Employed Professionals and Small Business Owners If you are self-employed or a small business owner, a Self-Employed Defined Benefit plan is one of the most powerful retirement planning tools available. With the right strategy, this pension plan […]
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 […]
This article has been updated for 2025. Defined Benefit Plan Contribution Range Previously, we discussed the maximum payment you can receive from a Defined Benefit Plan. In this post, rather than focusing on the maximum payout or “lifetime limit”, we will explain the maximum annual contribution. Additionally, contributions in Defined Benefit Plans (“DB Plans”) are not […]
