SERVICES CONTINUED (PAGE 3)

AGE WEIGHTED PROFIT-SHARING PLANS
Age Weighted Profit-Sharing Plans (AWPS) are similar to the Target Benefit Plans described above, except that the contribution is discretionary, rather than mandatory.

In some circumstances, a better allocation can be achieved under these plans, because Target Benefits are based on a three year average of compensation, while the AWPS is based on current compensation.

DEFINED BENEFIT PLANS
In contrast to the previously described plans, defined benefit plans are designed to provide a desired retirement benefit for each participant. This type of plan can allow for a rapid accumulation of assets over a short period of time. The required contribution is actuarially determined each year, based on factors such as age, years of employment, the desired retirement benefit, and the value of plan assets. Contributions are generally required each year and can vary widely. The maximum benefit allowed to be funded is 100% of compensation, to a maximum of $175,000. Note that this is NOT a CONTRIBUTION limit.

For an example of what a first year contribution might look like, click here




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