Defined Benefit Plans Are you a business owner? A defined benefit plan might be just what you need to raise your workers’ moral, allay their pension worries, and even improve your own potential pension benefits.With a defined benefit plan, business owners start the fund for the employees in the name of the business. Using a tiny percentage of the employee’s salaries and on their behalf, the business contributes regular amounts to this fund in a tax-deferred account. At retirement, the employee receives retirement benefits from this fund.This kind of arrangement motivates employees to work harder and stay committed to the business until they retire. Meanwhile, you the business owner can benefit even more than the employees do: you can design the plan in a way that will bring you majority of the benefits.What is in it?The main advantages are:You and your employees will know the amount for retirement benefits beforehandRoom for much larger tax deductiblesTraditionally Funded Defined Benefit Plans can be designed to favor a select group of workers, but it attracts lower tax deductibles than 412(e)(3) Fully Insured Defined Benefit Plans.However, a 412(e)(3) Fully Insured Defined Benefit Plan is not suitable for conditions where there are many employees who are older or same age as the owner.We will help you understand these nuances better so that you can select the ideal Defined Benefit Plan for yourself and your employees. Schedule an appointment with us today.