Many employers find that by sponsoring a defined benefit (traditional or cash balance) and a defined contribution (profit sharing or 401(k)) plan, they can provide additional retirement benefits for select employees.
By leveraging the benefits provided to employees in the profit sharing plan, many employers can provide additional valuable benefits to key employees in the defined benefit plan, sometimes amounting to hundreds of thousands of dollars.
Care must be taken in the design and administration of such a “combo-plan”, as the nondiscrimination rules can be quite complex., The professionals at Pinnacle Plan Design have extensive experience in this arena and know exactly how to navigate these complex nondiscrimination regulations, while maximizing opportunities for key employees
Read our Tale of Two Dentists to see how a company greatly benefited from a combination of plans.
Please contact Pinnacle Plan Design if you would like to learn more about a combination of plans and how such an arrangement may benefit you.