With the end of the year approaching, now is the time for high income earners to assess whether a defined benefit plan makes sense.
A defined benefit plan allows the highest deductible contributions of any retirement plan. This plan allows you to save for retirement on a tax-deductible basis. Investments made within the plan grow without any current income taxes. The pension plan allows flexibility as to when you withdraw your money, with small minimum distributions commencing upon reaching the age of 70 ½.