Employers can now offer a Defined Benefit (k) or DB(k).

   I read an interesting article several days ago about a new retirement option made available when congress passed the Pension Act of 2006. This option called the DB (k) will allow employers to offer a retirement option that has the guaranteed income stream of a defined benefit plan, think government pension, with self-directed 401(k) investing, which many of us are already familiar with and hopefully participate.

      Of course a major reason an employer would decide to start offering this option is to help attract prime talent. Businesses would also be allowed to participate even if their plan would be considered “top-heavy” by the IRS.  However, it does not become available until next year, 2010. In order for your company to be eligible it must have 500 or less employees. After the turmoil many of us have been through recently with the economic meltdown and having our 401(k)s devastated, a small annuity income blended in with our traditional 401(k) investing would be a nice addition.  Keep a look out and ask your employer if they may adopt one. If you are job hunting this is a benefit that may be worth accepting one job offer over another. For more details click the link below to read an article published by Klipinger. Finance.Yahoo.Com – Click for Full Story

Another good article with details written when the 2006 Pension Act was passed.
Financial-Planning – Click for Fully Story