DBIllustration o35-35-45
© 2004
AutomatedPensions.com
DBIllustrationBank
Owner Age(s):
35
Employee Ages:
35, 45
Year:
2007
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DBIllustrationBank
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)
$47,035
$56,995
$56,995
Owners' % of plan cost
67.7%
78.1%
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)
$29,000
$29,000
$15,500
Combined Plans
Total for owner(s)
$76,035
$85,995
$72,495
Owners' % of Grand Total
73.6%
80.5%
86.6%
Administrative expense:
high
twice as high
three times as high
Overall Grade
*
:
D-
D+
B
Comments:
Employee cost prohibitive.
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DBIllustrationBank
*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.
