Jump to content

Enhanced Benefits for Executives

Guest Jayco

Recommended Posts

Guest Jayco

I am advising a governmental entity (state or local type) regarding providing deferred compensation for certain executives. Since the nondiscrimination rules no longer apply to these plans, it seems that this could be accomplished through either the DB plan or the 401(a) plan. My question is whether an additional benefit could added to the DB plan that would work like a cash balance plan (obviously the DC would already be max'd out), while the participant still accrues his normal benefit under the DB plan. The problem with using the normal DB piece is that the client wants more flexibility than could be acheived using it. In essence, the employer would make a contribution each year to the plan that would be credited solely to the cash balance piece of the plan.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...