A Detailed Defined Benefit Resource Guide

A Detailed Defined Benefit Resource Guide

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.