A Defined Benefit Pension Plan generally can offer large tax-deductible Employer contributions that must be made every year.  A "DB" Plan is geared toward providing a specific monthly or annual pension benefit payment at retirement age. 

Below are some features of a Defined Benefit Pension Plan:

• The Plan must be funded every year, regardless of business profits.
• IRS will impose excise taxes for missed or late funding.
• Actuarial assumptions are made at the time the plan is adopted and again each year the plan is funded in order to make sure the plan's assets will be sufficient to pay the promised benefits.
• Annual Form 5500 requires Schedule B actuarial certification from an enrolled actuary.

Please call Hembree TPA, Inc. at (888) 486-401k or e-mail us at info@hembreetpa.com to establish a new Defined Benefit Pension Plan or review an existing Defined Benefit Pension Plan. 

[Back to top]