DBIllustration o45-25-35


Owner Age(s): 45
Employee Ages: 25, 35
Year: 2007

< Back to 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) $99,512 $93,596 $93,596
Owners' % of plan cost 90.0% 91.2% see Owners' % of
Grand Total below
401(k) Plan
Profit Sharing)
optional/required optional optional required
Additional benefit
to owner(s)
(includes owners'
401(k) deferral)
$29,000 $29,000 $29,000
Combined Plans Total for owner(s) $128,512 $122,596 $122,596
Owners' % of Grand Total 89.8% 90.7% 96.9%
Administrative expense: high twice as high three times as high
Overall Grade*: B C A

< Back to 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.