Podcast Center
Video Center
Webcasts
Resource Center
Events
October 05, 2005 at 08:00 PM
Kicker: Retirement Plans
? Defined benefit pension plan–A qualified retirement plan in which the benefit is defined as a specific dollar amount or a percentage of the employee’s income before retirement. The plan almost always specifies a reduced benefit for early retirement, death or disability.
? Defined contribution plan–A qualified retirement plan, such as the 401(k), that defines plan contributions. The employer’s annual contribution, up to a maximum set by law, is determined by a formula.
? The profit-sharing plan–A discretionary defined contribution plan in which an employer shares company profits with employees by making contributions to a profit-sharing retirement plan.
? The money purchase plan–An employer-sponsored defined contribution retirement plan in which each participant’s benefit is determined by the amount the money in the account can purchase at retirement.
