Business Banking - Retirement Services
Defined Benefit Plans
| What it is: | A tax-deferred company retirement plan in which the benefit to participants is defined in advance, based on criteria such as salary history and years of service, and in which the employer bears the investment risk. |
| Advantages: |
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| Eligibility: |
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| Maximum total plan contribution that the employer may deduct | Contribution is limited to amount necessary to fund future benefits (maximum eligible pay per participant is $245,000). |
| Maximum annual allocation to participant’s account | No individual accounts. |
| Maximum annual participant deferral (cannot exceed 100% of pay) | No participant contributions allowed. |
| Required employer contribution | Contributions based on anticipated payouts during retirement and actuarial assumptions. |
1 Plans with a two-years-of-service eligibility requirement must offer immediate 100% vesting.
Investment products are not deposits or obligations of, or guaranteed by Lake City Bank or any other bank, are not insured or guaranteed by the FDIC or any governmental agency and are subject to investment risks, including possible loss of principal invested. Past performance is not a guarantee of future results.
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