Key Factors Affecting Plan Selection for Businesses

Free CFP Exam lesson in Retirement Savings and Income Planning. 14 min read, ~2,115 words.

DB plans allow the largest contributions for older, high-earning owners, actuarial cost scales with proximity to retirement. SEP: employer-only, same % for all, cheap to administer, expensive with staff. SIMPLE: $17,000 deferral, 100 or fewer employees, low ceiling for high earners. Cross-tested profit-sharing skews contributions toward owners by testing on...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• F.50

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