Defined Contribution Plans

In some cases, it is best to add a defined contribution plan (DC) to a defined benefit plan in order to provide appropriate benefits to employees. Besides being a versatile compliance tool, a well-designed defined contribution plan has additional positives including employee appreciation and retention.

A defined contribution plan design offers a variety of options and features for the employer and employee. Some of those include how the plan is funded. Funding options can be sourced either from the employer or the employee. Some employers will use a match or a Safe Harbor of 3% of wages as their sourcing options. Other plans may have a 401(k) feature that allows the employee to defer income up to the IRS limit. Structuring your plan requires knowledge of all of the available options for both tax-deferred retirement savings and compliance requirements. In addition to funding, setting up your defined contribution plan requires selecting an investment platform. The investment platform is chosen by the plan sponsor along with their financial advisor. *Unlike some of our competitors, Actuarial Business Solutions does not take any assets under management, allowing our clients and their advisors maximum flexibility.