/aa014176-5bfc2b8bc9e77c002630643b.jpg)
What is a defined contribution (DC) plan? A defined contribution (DC) plan is a generally tax-deferred retirement plan, such as a 401 (k) or 403 (b), in which employees pay a fixed amount or percentage of their salary into an account intended for finance their retirement. The sponsoring company, atRead More →
/WorkRetirement-56eeac473df78ce5f8395f69.jpg)
Defined benefit plan or defined contribution plan: an overview Employer pension plans are divided into two broad categories: defined benefit plans and defined contribution plans. As the name suggests, a defined benefit plan, also known as a traditional pension plan, provides a specified payment amount at retirement. A defined contributionRead More →
/GettyImages-119717074-ea43b342d01b4b859bfbe159201fbcc2.jpg)
A qualified retirement plan is simply a plan that meets the requirements set forth in section 401(a) of the US tax code. This does not mean that other types of plans are not available to build your nest egg. However, the majority of retirement savings programs offered by employers areRead More →