A Defined Benefit Pension Plan is a type of a pension plan sponsored by an employer that gives the maximum possible benefit to the participants. It is an ideal solution for someone who is a business owner or a self-employed individual as it can help save for retirement while lowering taxable income.
Contribution limits to a Defined Benefit Pension Plan?
There is a common misconception that the contribution to a Defined Benefit Pension Plan is limited to $220,000. However, this is not true. The contribution amount to a Defined Benefit Pension Plan is calculated by an actuary and varies based on the age, income and years of service of the individual. These amounts are difficult to generalize and you should reach out to us (email@example.com) if you need an exact estimate. You can use our calculator to estimate the contribution amount in the first year of the plan. http://www.pensiondeductions.com/defined-benefit-calculator-self-employed/