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Investment FAQS

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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:

  • There is no maximum annual benefit. Benefits are calculated by an actuary based on employees age, salary, and years of service.

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 LPL Investment Consultant to go over your options for retirement.

Financial Advisors of LPL Financial are Registered Representatives with, and Securities, Advisory Services and Insurance Products are offered through LPL Financial and its affiliates, Member FINRA/SIPC. LPL Financial is not a registered broker/dealer. Investments are: Not FDIC insured, may lose value, are not bank guaranteed, and are not obligations of LPL Financial. LPL Branch Office located at 1311 Carolina Ave, Washington, North Carolina 27889. Investment Advisory Services offered through LPL Financial, a SEC Registered Investment Advisor


This site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.


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