FAQ


Q1 : What is a defined benefit plan?
Answer : A defined benefit plan is a type of a pension plan that allows a business owner to contribute the maximum amount of money towards their own retirement. Contributions can be made each year and typically range between $50,000 to $250,000 which can be deducted on your tax returns.


Q2 : How to determine the contribution amounts to the defined benefit plan?
Answer : The contribution amounts are typically based on the age and average income of the individual. Use our calculator to determine the maximum permitted amount for you.


Q3 : Is there a minimum contribution required each year?
Answer : Each year the actuary will calculate a range in which you can contribute to the defined benefit plan. The minimum amount can be reduced in a particular year with a plan amendment.


Q4 : How can I set up a defined benefit plan?
Answer : Once you decide to go ahead with the pension plan, please reach out to us. We will assist you with drafting the plan document and help you open the investment accounts. Our company can also provide the annual administration and administrative services for your defined benefit plan.


Please feel free to email us at info@pensiondeductions.com or call 646-409-1660 to speak to a retirement plan consultant.