Pension Deductions has launched an online defined benefit (DB) calculator that can calculate the contributions to a DB plan at the click of a button.
The company believes the new tool will reduce wait time for advisers, who will usually contact actuaries to estimate DB contribution requests when clients explore the possibility of setting up a plan for their business.
The online calculator collects minimal information including age and compensation, and then generates a total lump sum that can be accumulated in the DB plan, with an assumed retirement age of 62 or 65.
The calculator can also determine the maximum possible contribution in the first year of the DB plan within IRS limits, according to Pension Deductions.
More information about the online tool can be found here.