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Tuesday, October 19, 2010

Advantages of Offering a Defined Benefit Plan:

- Owners can contribute more than 401(k) limits of $16,500/$49,000
- Owners have option to overfund contributions (150%) in a good year
- Allows for larger tax deductions compared to defined contribution plan
- Employer contributions can be taken as a business expense deduction
- Excellent source of retirement income for employees close to retiring

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