Personal Defined Benefit Plan

Personal Defined Benefit Plan

A Personal Defined Benefit Plan helps self-employed and small business owners save aggressively for retirement by allowing you to make very high contributions.

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PLAN DETAILS

Personal Defined Benefit Plan

A Personal Defined Benefit Plan helps self-employed and small business owners save for retirement by allowing them to make very high contributions. Participants can target a desired level of retirement income, and contribution amounts are adjusted each year to help them reach their goal.

  • A customized funding proposal
  • High contributions that are typically 100% tax-deductible, within IRS limits.
  • A predetermined retirement benefit
  • Expert recordkeeping and plan service
  • Retirement planning tools, resources, and advice
Key facts and details

Eligibility

For professionals age 50 or over who can make annual contributions of $90,000 or more for at least five years and who have few, if any, employees. For people who are looking for a quick way to increase their retirement assets.

Tax Benefits

Contributions are generally 100% tax-deductible, within IRS limits. Earnings grow tax-deferred and are taxable when withdrawn.

Who contributes

Contribution amounts

Withdrawals

Penalty-free distributions may be received upon retirement or termination of service. Required Minimum Distribution (RMD) withdrawals must begin by age 70½ (if you were born before July 1, 1949) or age 72 (if you were born on or after July 1, 1949), even if you are still working. You may receive your benefit payout by rolling assets into an IRA, setting up an annuity, or receiving a lump-sum distribution. If you don’t start RMDs when required or take less than the required amount, you will face a 50% penalty on the total amount of the distribution. Withdrawals before age 59½ are subject to a 10% penalty.

There are certain circumstances in which you may be eligible to withdraw funds before age 59½ without taking a 10% penalty. Contact us at 1-844-GALLEON to learn more.

Fees

  • Custodian Fees:
  • Monthly service fees: $0
  • $0 maintenance fees
  • Annual services fees apply
  • Commissions: $0 per online listed equity trades

Other account fees, fund expenses, and brokerage commissions may apply
Fees may be a deductible business expense in the year they are paid.

Without submission to the IRS: $1,500, plus $250 for each participant in excess of two

With submission to the IRS: $3,000 to $3,750, plus applicable IRS filing fee, currently $3,000. The IRS reserves the right to change the filing fee at any time.

PBGC-covered plans: $400 for a request to remove coverage only; $800 for PBGC standard termination

Advisory fees:
Global Advisers charges an annual management fee.

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