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"Complete Control" with Recommended Contributions

DWC 09/3/20
Congratulations on making it through our last installment and to this one. We typically do not like to get that deep into the weeds, but hey, this is actuarial stuff after all, and you can’t always get what you want. To make up for the complexity of determining the Minimum Required Contribution (MRC), we are going to discuss Recommended ...
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One and One Makes Five: Calculating the Minimum Required Contribution

DWC 08/20/20
In our last episode, we showed how the cash balance benefit for our owner, Robert Smith, accumulates over time. In our Perfect World (no offense Huey!), Robert contributes exactly $100,000 to the plan each year, and the investment return is exactly 3% to match the interest crediting rate. When Robert is ready to retire at the end of ten years, the ...
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Cash Balance Contributions: Definitely Not "Money for Nothing"

DWC 08/6/20
In our last installment, we took a look at the different ways to define the contribution credits in a cash balance plan. For Robert Smith, the owner and only employee of Robert Smith, Inc., the contribution credit is set at $100,000 or 66.67% of W-2 pay, if lower. Now it’s time to start learning about the actual contribution amounts. As a ...
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