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The defined benefit plan generates $200,000 plus tax deductions in a year. Adam Bergman from IRI Financial explains that a defined benefit plan guarantees a specific retirement benefit to each eligible employee, unlike a 401k or defined contribution plan. Contributions are based on actuarial analysis, owner's age, and desired annual contribution amount, and are determined by an actuary. Employer contributions are required to meet the benefit objective annually. The primary benefit of a DB plan is the high annual deduction it offers.