|
What
kind of owners benefit:
|
•
|
Older
highly compensated owners, especially those with younger
lower compensated employees.
|
| • |
Also
owners who have already accrued a large benefit in a defined
contribution plan. |
| |
|
| The
employer who finds this plan attractive is one who: |
| • |
Desires
to maximize the amount of funds that can be set aside
for retirement (and deducted for income tax purposes),
even in excess of the $30,000 annual limitation of defined
contribution plans. |
| • |
Desires
to design the plan to maximize the benefit to the highly
compensated older owner. |
| • |
Can
accept higher administrative costs, including fees to
PBGC. (PBGC is the Pension Benefit Guaranty Corporation
that guarantees benefits similar to the FDIC insuring
bank accounts). |
