Retirement Plans

Plan Limits

Defined Benefit Plans

A defined benefit plan provides a predetermined, level of benefit payments for the life of the participant or the life of the participant and spouse. The monthly retirement benefit is calculated using a formula specified in the plan. The employer contribution is required annually and is typically higher than a defined contribution plan, depending on the employer's demographics. The employer bears the investment risk. Older employees tend to be favored because they have a shorter time to fund for their retirement.

Types of Defined Benefit Plans:

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401(k) PLANS/403(b) PLANS
The calendar year limitation on elective deferrals underIRC §402(g)(1).