Defined Benefit Plan
  • The most popular plan for building retirement savings quick!
  • By a predetermined formula, a defined benefit plan must provide for the payment of definitely determinable retirement income benefits.
  • Benefits and contributions under a defined benefit plan are not based upon profits.
  • Contributions are tax deductible.
  • Annual contributions may exceed $150,000 for a single owner.
  • Accumulations at retirement may exceed 2,000,000.
  • Retirement Age may be as low as 55.
  • Annual Contributions are flexible.
  • A defined benefit plan is subject to the IRS minimum funding standards.
  • Allows accumulation of maximum retirement benefits in the shortest time.

Defined Benefit Examples
  • $151,000 annual contribution: Age 60, earning $200,000.
  • $54,000 annual contribution: Age 40, earning $70,000.
  • $110,000 annual contribution: Age 50, earning $110,000.
-News Flash
IRS Retirement Plan News
11/2/2011  -  
Better Business Bureau
2/7/2011  -  Webster Planning Corporation is a BBB Accredited Business. Click for the BBB Business Review of this Financial Planning Consultants in Roseville CA
Loan Interest - 2012
1/3/2011  -  Loan Interest Rate for February 2012 is 1.34%
Cafeteria Plan changes for 2011
12/29/2010  -  Beginning in 2011, Over the Counter (OTC) medicines will NOT be deductible through your flex plan. Only Prescription medicines will be deductible through your Flex plan beginning in 2011. Link to Cafeteria
7 Day Deposit Requirement for 401(k) Deferrals
1/26/2010  -  The DOL announced the publication of a final rule to protect employee contributions deposited to small plans (under 100 participants). Effective 1/14/2010 the safe harbor period of 7 business days after withholding to deposit employee deferrals to the plan would be deemed to be in compliance. For Employers that have been using the 15 day rule, we would advise that you make the necessary changes immediately to fall within the 7 days period.
2012 Limits - INCREASED!
11/2/2006  -  New 2012 Limits have been released! They have increased after remaining constant since 2009! See Policies for the most up-to-date information! Link to Policies
DOL issues USERRA Notice Final Regulations January 18, 2006
1/19/2006  -  The DOL has issued final regulations on the USERRA Notice. Did you know that Employers MUST provide notice?Link to the DOL to download the newest poster text in order to be in technical compliance with the final regulations.
Bond Coverage
11/17/2005  -  Did you know your plan must be covered by a Fidelity Bond in the amount of 10% of the plan assets? Contact us for more information!

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