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A defined benefit (DB) plan guarantees a specific retirement benefit for eligible employees, unlike a 401(k) plan, which does not provide a set benefit. DB plans are founded on actuarial analysis, taking into account the owner's age and desired annual contributions, which are mandatory as determined by an actuary, establishing a binding obligation for the employer. Once the retirement benefit goal is set, yearly employer contributions are calculated to meet this objective. One significant advantage of a DB plan is the potential for substantial tax deductions, exceeding $200,000 annually.