Who Can Sponsor a DB/DC Combo Plan?
Small and mid-sized businesses
They work particularly well for professional practices (doctors, dentists, attorneys, CPAs)
Business owners looking to maximize tax-deferred savings
How a DB/DC Combo Plan Works
This combines a traditional Defined Benefit (DB) plan with a Defined Contribution (DC) plan—usually a 401(k)/Profit Sharing plan. It allows high-income earners to make significantly larger contributions than a standalone 401(k) would permit.
Types of Contributions
Defined benefit contributions (actuarially calculated)
Employee elective deferrals (pre-tax or Roth)
Employer profit-sharing contributions
Catch-up contributions for employees age 50+
Advantages
Dramatically higher contribution limits than 401(k) alone
Accelerated retirement savings
Substantial tax deductions for employers
Ideal for owner-only or controlled group businesses
Safe Harbor and integrated plan testing strategies
Ready to Learn More?
Contact Benefits² Administrators to explore a custom DB/DC Combo plan design that fits your organization’s needs and maximizes retirement savings.
Our offices will be closed December 24-26 and January 1.
We wish you and yours a warm and safe holiday season, Benefits² Administrators