IRS Announces 2025 Cost of Living Adjustments to Retirement Plan Limits
The IRS released their 2025 limitations on the contribution amounts into qualified plans, such as 401(k) and Defined Benefit/Cash Balance plans.
Calculating Defined Benefit Plan Benefits
Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants. Actuarial assumptions and computations are required to figure these contributions. Defined benefit plans typically are funded entirely by the employer. Employers generally contribute enough annually to cover the normal cost of the plan—an amount that […]
What is a Defined Benefit Plan?
A defined benefit plan, funded by the employer, promises you a specific monthly benefit at retirement. For example, your pension benefit might be equal to one percent of your average salary for the last five years of employment times your total years of service. In general, as the name suggests, defined benefit plans guarantee a […]
