What is a DB(k)?
From my article at ChristianPF.com
With a new wave of tax law changes taking place in 2010, it is easy to overlook an exciting new retirement plan option that exists for business owners and employees who belong to a company offering the DB(k). Let’s look at some of the ins and outs of these new plans to see if they may be a fit for you.
What is a DB(k)?
A DB(k) is a combination retirement plan that is part pension plan along with a matching 401(k) plan. The “DB” is stands for a defined benefit retirement plan while the “k” of course is the 401(k) component. Why would a company offer these? First off, they are a great recruiting tool. If an employee was wiped out by the 2007-2009 stock market collapse or if they are an older employee look for a pension, the DB(k) can lure in potential employees who see the value these plans can offer. Firms in competitive industries could offer DB(k)s as a perk to seal the deal with a potential employee.
