Target benefit plans will appeal to older businessowners who are committed to doing what it takes to reach a retirement income goal. That's because larger contributions must be made to fund targeted benefits over a shorter period of time. In that perspective, too, a target benefit plan is similar to a defined benefit plan.
Target Benefit Key Points:
- Targets retirement benefits similar to a defined benefit plan.
- Requires fixed contributions like a money purchase pension plan.
- Ideal for small businessowners wanting predictable contributions targeting a specified benefit for the owner.
