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|
|Optional Auto-Adjust Contributions|
|Mitigate Underfunding Liability|
|No Crediting Limitations|
SUITABLE PROFILE FOR DR-VIP RETIREMENT PLANS
To learn more about Direct Recognition Variable Investment Plans, please visit our DR-VIP page or contact Kyle Frigon at 404.733.3456 or email@example.com.