Consider a DB Plan

Myths About Defined Benefit Plans

1. Only corporations can sponsor a DB plan. NOT TRUE. A sole proprietorship, partnership or limited liability corporation can sponsor a defined benefit plan on essentially the same basis as a corporation.

2. Plan sponsors cannot control the level of contribution. NOT TRUE. While DB plans do have funding requirements, these requirements are dependent on the benefits the plan promises. The plan sponsor can control the contribution by amending the plan to change the benefit to be provided. All you need is a good actuary, like IAI, to guide you.

3. Defined benefit plans are expensive to operate. NOT AT INDEPENDENT ACTUARIES! Give us a call at (888) 643-5179 or (503) 520-0848, or email us to request further information.

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1.	*Only corporations can sponsor a DB plan.* NOT TRUE. A sole proprietorship, partnership or limited liability corporation can sponsor a defined benefit plan on essentially the same basis as a corporation.
2.	*Plan sponsors cannot control the level of contribution.* NOT TRUE. While DB plans do have funding requirements, these requirements are dependent on the benefits the plan promises. The plan sponsor can control the contribution by amending the plan to change the benefit to be provided. All you need is a good actuary, like IAI, to guide you.
3.	*Defined benefit plans are expensive to operate.* NOT AT INDEPENDENT ACTUARIES! Give us a call at (888) 643-5179 or (503) 520-0848, or email us to request further information.