关于：Defined Benefit Plan

Defined benefit pension plans are designed to deliver a targeted annual retirement benefit, which can be as high as $185,000. Each year’s contribution must be calculated by an actuary — the exact amount depends on your income, the target benefit, years until retirement and anticipated investment returns. Annual actuarial fees and the required IRS report may be $2,000 annually so it general, your earnings should be $250,000 or more to make this type of self employed retirement plan a viable choice. Another negative: You’re locked into making the actuarially determined contribution each year. However, if you are over 50, a defined benefit plan may a great choice because it permits much bigger contributions than any other type of program.  The annual contribution is mandatory so your cash flow should be such that you can fund the plan each year.   This type of self employed retirement plan is a bad choice if you will have employees unless they are very young (contributions are small for young employees).