DEFINED BENEFIT PENSION PLANS ARE NOT CREATED EQUAL
Cash balance plans and other defined benefit (DB) plans offer successful business owners opportunities to save in taxes and create retirement income streams for plan participants. However, cash balance plans have limitations and risks that Direct Recognition Variable Investment Plans (DR-VIP) don’t have. There is a way to avoid being trapped by cash balance plan limitations; by terminating a cash balance plan and starting up a DR-VIP, participants can gain access to their investments before retirement age and capture the opportunity to accumulate even more. Cherry Bekaert Benefits Consulting’s business-smart solution for mitigating plan sponsor liabilities, putting plan assets under participant control and continuing tax deductible contributions.

SEE THE DR-VIP DIFFERENCE 

Plan Features	DR-VIP	Cash Balance Plans
Maximum Contribution Per Person	$300,000 +/-	$300,000 +/-
Tax Deductible Contributions
Tax Deferred Accumulations
Contribution Certainty
Optional Auto-Adjust Contributions
Mitigate Underfunding Liability
Mitigate Overfunding
Direct Recognition
No Crediting Limitations
Daily Valuation
Fully Automated

SUITABLE PROFILE FOR DR-VIP RETIREMENT PLANS

• Companies with partners/shareholders/senior management earning more than $400,000 per annum and looking to contribute $100,000/yr. to 401(k), profit sharing and/or VIP plan
• Firms seeking increased contribution and investment flexibility, administrative simplicity and mitigation of liabilities related to investment performance

To learn more about Direct Recognition Variable Investment Plans, please visit our DR-VIP page or contact Kyle Frigon at 404.733.3456 or kfrigon@cherrybekaertbenefits.com.