Is a defined benefit pension plan cost effective?
In many cases, a defined benefit pension plan is a very cost-effective way to provide tax-deferred savings. However, because the plan is complex, plan expenses can be significant. Before a plan is adopted, an analysis should be made comparing the cost of the plan with the benefit of tax savings. The result depends on a number of factors: tax rates, years until retirement, and years before the benefits are taxed as distributions. Request a feasibility study.
