Combined for General Testing (DB/DC Combos).
The DB/DC Combo Plans are relatively new and exciting hybrid plans. Together this hybrid can substantially increase the annual maximum dollar amount allocated to an individual when compared to a stand-alone defined contribution plan. It can substantially reduce the overall costs when compared to a stand-alone defined benefit plan.
Ideally, these plans fit best in circumstances in which there are older, highly compensated principals of an employer and on average a younger group of employees. Under the right circumstances the DB/DC Combo can be just what the doctor ordered.