A Detailed Defined Benefit Resource Guide: 2023

Published by:

VastSolutionsGroup.com

Why Defined Benefit Plans?

Defined Benefit plans (hereafter “DB” plans) plans can be a powerful tool in promoting financial security in retirement. They are a valuable option for businesses considering a retirement plan, providing benefits to employees and their employers.

Employers start a DB plan for many reasons:

• A well-designed DB plan can help attract and keep talented employees.
• Employers are entitled to a tax deduction for contributions to employees accounts.
• A DB plan benefits a mix of rank-and-file employees and owners/managers.
• The money contributed may grow through investments in stocks, bonds, mutual funds, money market funds, savings accounts, and other investment vehicles.
• Contributions and earnings generally are not taxed by the Federal Government or by most state governments until they are distributed.
• A DB plan may allow participants to take their benefits with them when they leave the company, easing administrative responsibilities.

This publication highlights some of the DB plans advantages, some of your options and responsibilities as an…