Getting Started with Your DB Plan

Step 2 : Estimating Your Contribution

We will calculate your annual contribution to a OnePersonPlus® or OwnersPlus program based on plan formulas, actuarial assumptions and:

• Your current age – the older you are, the more you may contribute each year to reach a specific goal
• The average of your three highest consecutive years of income. Eligible compensation differs based on your type of business. Learn more about compensation.
• Your planned retirement age – usually at least three to five years from the year you adopt the plan
• In subsequent years, the balances you have accumulated in your plan

You can run an estimate for yourself right now. If you have employees, complete an Illustration Request Form and we will run a customized illustration for you.

Step 3 : Establishing Your Plan

Once we have a plan designed to meet your objectives, you will complete a Plan Design Questionnaire and email or fax it to Dedicated DB. After receiving your Questionnaire a Defined Benefit specialist will review it, confirm the estimate and, if necessary, contact you or your Financial Advisor for additional information. The specialist will send you the final estimate with instructions about payment details.

Pension Benefit Guaranty Corporation (PBGC)

Defined Benefit plans are required to be covered by the Pension Benefit Guaranty Corporation (PBGC) insurance program with the following exceptions:

• Professional service employer with fewer than 26 participants
• Owners only / with spouse

A professional service individual includes, but is not limited to, physicians, dentists, chiropractors, osteopaths, optometrists, other licensed practitioners of the healing arts, attorneys at law, public accountants, engineers, architects, draftsmen, actuaries, psychologist, scientists, and performing artists.

If required to be covered by the program, premiums will need to be paid to the PBGC.

Defined Benefit plans should be established by the end of the fiscal year for your business, generally December 31.

Under SECURE, Defined Benefit plans can be retroactively adopted, up until the tax return due date for the employer (including extensions). However, ideally, DB plans should be adopted within 8.5 months of the desired year end, in order to meet minimum funding standards. If a DB plan is adopted after 8.5 months after the plan year, but before the TRDD+E for the employer, then additional excise taxes will be due.

Step 4 : Investment Account

Once your DB plan is established and we provide your Trust ID, you can open an investment account at any brokerage, mutual fund company or through a financial advisor. You (and your advisors) select and manage the investments. Dedicated DB does not manage your investments or charge any investment-related fees.

• We do suggest that you consider investments that are not highly volatile.
• If you open your account prior to December, do not deposit more than 50% of the expected contribution until you give us your final compensation for the year and we have updated your contribution amount.
• Contributions are not required until you file your taxes, with extensions, but no later than 8½ months after the end of your fiscal year.