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setting up DB plan recommendations for S corp

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I am a S Corp owner planning to set  up Defined Benefit plan. I do my own taxes. Any recommendations for a plan setup and  administrator ? I found  Charles Schwab to be expensive. Does TD Ameritrade offer full service like Schwab ? Any recommendations on Emparion? 

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You need an actuary (preferably), or a TPA that then outsources/contracts with an actuary (clunkier). This firm would provide required plan document and required annual actuarial valuations. There would also be an annual government filing that they would do but depending on the circumstances might be very simple such that you could also do yourself.

You would be trustee, so wherever you went to custody the assets wouldn't matter much, so choosing the least expensive reputable financial firm makes sense. Going to such a firm for everything, in my opinion, would be a mistake

Note that as an S-corp, only your W-2 pay counts as wages for pension purposes, so lowballing your pay to avoid FICA and Medicare taxes also lowers your potential pension.

If you have employees there are lots more rules to follow (hence, go to a qualified actuary or TPA who does a LOT of these plans). 

If you are the only employee it's a little simpler, but if you already have another plan like a profit sharing 401(k) or a SEP then you have some deduction rules to navigate and issues if using SEP -5305 document.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services


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  • 2 months later...

Hi VA, I am also a S Corp Owner planning to set up a defined benefit plan this year. Did you go with Schwab or Empairon? Would you mind sharing your experience with the TPA/actuary that you have chosen? Would you recommend them?

Bob the Swimmer, I have emailed you separately to ask for the contact info of your actuary.

Thank you both in advance.

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