Consider a DB Plan

What Other Advantages Does a Defined Benefit Plan Have for the Small Business Owner?

1. Benefits may recognize prior service. Typically, this is to the benefit of the business owner.

2. The older a participant is, the more valuable the plan benefits are for that participant. This is also typically an advantage for the business owner.

3. Contributions and deductions are not dependent on compensation in the current year. The benefit, and IRS limits on the benefit, may be based on compensation in prior years. Under some circumstances, the business owner may make a substantial contribution without any current taxable compensation.

1.	Benefits may recognize prior service. Typically, this is to the benefit of the business owner.
2.	The older a participant is, the more valuable the plan benefits are for that participant. This is also typically an advantage for the business owner.
3.	Contributions and deductions are not dependent on compensation in the current year. The benefit, and IRS limits on the benefit, may be based on compensation in prior years. Under some circumstances, the business owner may make a substantial contribution without any current taxable compensation.