|
What
kind of owners benefit:
|
•
|
Older
highly compensated owners, especially those with younger
lower compensated employees.
|
| • |
Also
owners who have accrued a large benefit in a previous
defined benefit plan. |
| |
|
| The
employer who finds this plan attractive is one who: |
| • |
Desires
to favor the older highly compensated employees over the
younger lower compensated employees. |
| • |
Desires
a discretionary contribution so that no contribution is
required if he doesn't want to. |
| • |
Can
afford higher administrative cost. |
