Defined Benefit Plans
A Defined Benefit (DB) plan provides a solid foundation for retirement, rounding out a total retirement program. It can be used with 401(k), 403(b), profit sharing, money purchase and nonqualified plans, or on its own.
This plan is often referred to as a pension, and is funded by the plan sponsor.
What are the advantages of a Defined Benefit retirement program?
- Lets you deduct your contributions from taxes as a business expense
- Helps recruit and keep quality employees
- Invests in long-term employees rather than short-term employees
A Defined Benefit retirement plan allows employees to:
- Receive a guaranteed benefit, funded by you
- Eliminate investment decisions and assuming investment risk
See how DB plan services benefit everyone
As a Defined Benefit plan sponor, both you and your participants will benefit from the consultative approach we use to determine a strategy that suits your organization's needs. Details
Realizing the full potential of your retirement program
Everything we do focuses' on meeting your needs and guiding you toward the outcomes you seek.
Already working with a Third-Party administrator?
You can also unbundle your retirement plan services with The Principal to help meet your individual needs.
- Winding Down Your Hard-Frozen Defined Benefit (DB) Plan: Learn best practices for developing and implementing a DB plan termination strategy in a timely, cost-efficient manner. (PDF: 695 KB)
- Considering a cash balance plan (PDF: 41 KB) or a plan freeze (PDF: 43 KB)? - Get the facts to help you decide what's right for your retirement plan.