| Defined Benefit
Plan
A formula based plan funded wholly by the employer
that provides a lump sum benefit based on salary, age,
and years of membership.
Key Benefits of a Defined Benefit
Plan:
-
Employer contributions
are mandatory per the amount stated in the
plan document.
-
Deductible employee contributions
are not allowed.
-
Plan administration and
compliance regulations require an enrolled
actuary.
|
Who Can Establish:
- Self-employed Persons
- Partnerships
- S-Corporations
- C-Corporations
- Non-profit Groups
|
Annual Contributions:
Defined Benefit Candidates:
-
A large corporation who
desires to fund employee's retirement with
mandatory annual contributions.
-
A business owner who desires
to put away the maximum savings into retirement
and who has no other employees or only young
employees that will have the lowest non-owner
contribution costs.
-
An employer that feels
the organization's future cash flow will support
the continuation of the plan can make mandatory
contributions.
|
Contact a UVEST Investment
Consultant to go over your options for retirement.
Securities and insurance products are offered by UVEST Financial Services and its affiliates, member FINRA / SIPC. UVEST and First South Bank are independent entities.
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