Defined Benefit Plan

Close up of two people reviewing financial documents

On February 12, 2021, the House Ways and Means Committee approved additions to the new COVID-19 relief package that will most likely be approved by the end of February. It includes key elements related to single-employer plans including 401(k) and defined benefit plans.   The legislation is being prepared to come up for a House vote on February…

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For many, asset protection is an after-thought, if thought about at all. Are you aware that retirement accounts such as Individual Retirement Accounts (“IRAs”), 401(k)s and Defined Benefit (“DB”) plans receive protection from creditors and bankruptcy? Asset protection is often associated with high-net-worth individuals, business owners, professionals such as doctors, surgeons, attorneys, and CPAs, as…

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For those defined benefit (“DB”) pension plans covered by the Pension Benefit Guaranty Corporation (“PBGC”), the PBGC has adopted a new uniform rule for premium due dates.  This new rule is applicable for the 2014 and later plan years.  Under the current rules, DB Plans covering less than 100 participants (i.e., small plans) have been…

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Returns on public sector pension plans reach a record low As the sponsor or contributing member of a public sector pension plan, you’re aware that investment returns have been lagging the assumed rate of return over the last few years. This, along with increased longevity of your retirees, is increasing plan liabilities & required contributions.…

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For everyone following the ongoing negotiations over extension of unemployment benefits, the current language would impact sponsors of defined benefit (“DB”) pension plans by lengthening the phase-out period for the pension funding relief under “MAP-21”.  As a sponsor of a DB plan covered by ERISA, this would extend the MAP-21 phase out date from 2018…

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If you’re a one-person business or have substantial self-employment income outside of your “regular” job, a Solo Defined Benefit (“DB”) plan may be for you.  We recently received a call from a professional with the situation of a surprise $250,000 income boost this year and another $100,000 the following year.   His question was “how can…

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A Pension Obligation Bond has a ripple effect. The key is to thoroughly investigate from the outset whether or not this financial instrument is the most suitable choice. It is a long-term commitment involving a fixed repayment schedule. The rewards forever hold the promise of outweighing the risk. Each municipality has a different degree of…

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Retirement planning is most certainly a marathon and not a sprint. It is a journey you will be on for decades, with a clear financial goal at the “finish line”. That goal is to be able to retire at a standard of living that is acceptable to you. The total nest egg you need to…

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Here is a breakdown of the inherent benefits and incentives involved in retirement planning. Choice There are unlimited investment options available in today’s world. You can stay with a simple index fund or you can tailor your choices. Low Costs The costs of investing in retirement plans and IRA’s have never been lower. You are…

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Hindsight is 20/20, but that wisdom winds up arriving too late. In order to secure a satisfying and comfortable retirement, you will need to educate yourself about how to arrive at such a successful financial future. A financial advisor can handle the specifics of investment vehicles and strategies, but the long-term road map is dependent…

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