DBIllustration o45-65


Owner Age(s): 45
Employee Ages: 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
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Defined Benefit Plan Cost of owner(s) $99,512 $93,593 $93,593
Owners' % of plan cost 77.1% 81.4% 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 $29,003 $15,503
Combined Plans Total for owner(s) $128,512 $122,596 $109,096
Owners' % of Grand Total 79.4% 82.9% 87.0%
Administrative expense: high twice as high three times as high
Overall Grade*: C+ B- B

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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.