More information on Pension Protection Act

Tom age 50, thriving public relations practice.
Plans to retire at age 62.
Business incorporated.
Tom's W-2 income $220,000.
Employee incomes: Susan age 25, $26,000 and Brad age 34, $30,000.
Tom was delighted to learn that he could keep the 401(k) and establish a defined benefit plan. He'll maintain his company's 401(k) and continue to make contributions equal to 3% of each of his employee's salary. Tom will establish a defined benefit plan and contribute $100,000 for himself and $8,500 on behalf of his two employees. But to provide an incentive for his employees to stay with him until he retires, he will vest benefits in the plan over six years.