Originally Posted by
kwri10s
Here are some IRS definitions:
Contributions to a defined benefit plan are based on what is needed to provide definitely determinable benefits to plan participants. Actuarial assumptions and computations are required to figure these contributions.
In general, the annual benefit for a participant under a defined benefit plan cannot exceed the lesser of:
100% of the participant's average compensation for his or her highest 3 consecutive calendar years, or
$220,000 for 2018 ($215,000 for 2017)
The dollar amounts are subject to cost-of-living adjustments in future years.
Or try this:
Compensation and contribution limits are subject to annual cost-of-living adjustments. The annual limits are:
salary deferrals - $18,500 in 2018 ($18,000 in 2015 - 2017), plus $6,000 in 2015 - 2018 if the employee is age 50 or older (IRC Sections 402(g) and 414(v))
annual compensation - $275,000 in 2018. $270,000 in 2017 (IRC Section 401(a)(17))
total employee and employer contributions (including forfeitures) - the lesser of 100% of an employee’s compensation or $55,000 for 2018 ($54,000 for 2017 not including "catch-up" elective deferrals of $6,000 in 2015 - 2018 for employees age 50 or older) (IRC section 415(c))
By the way, the VB plan isn't a defined benefit plan, it is a variable benefit plan. How about posting what the IRS says about variable benefit plans?