DBIllustration o55-40-45-45-50-50-55-55-60-60-65
© 2004
AutomatedPensions.com
DBIllustrationBank
Owner Age(s):
55
Employee Ages:
40, 45, 45, 50, 50, 55, 55, 60, 60, 65
Year:
2007
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3 Plan Comparison
Traditional
Defined Benefit Plan
Cash Balance Plan
Cross-Tested
Cash Balance Plan +
Profit Sharing Plan
Click for illustration-->
illustration
illustration
illustration
Defined Benefit Plan
Cost of owner(s)
$252,657
$153,926
$153,926
Owners' % of plan cost
41.8%
42.3%
see Owners' % of
Grand Total below
401(k) Plan
(includes
Profit Sharing)
optional/required
optional
optional
required
Additional benefit
to owner(s)
(includes owners'
401(k) deferral)
$34,000
$34,000
$20,500
Combined Plans
Total for owner(s)
$286,657
$187,926
$174,426
Owners' % of Grand Total
42.8%
43.8%
53.4%
Administrative expense:
high
twice as high
three times as high
Overall Grade
*
:
F
F
D-
Comments:
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*Note that even poorly graded plans may be appropriate in certain situations, such as for lower benefit levels, or if the employee total compensation package is negotiable.
