What are defined benefit retirement plans? Q.What are defined benefit retirement plans? A.Defined benefit retirement plans are lifetime annuities promised by employers and, in the case of most private plans, partially guaranteed by the federal government. Read more about What are defined benefit retirement plans?
What are defined contribution retirement plans? Q.What are defined contribution retirement plans? A.Think savings accounts with tax benefits—and a lot of rules. Read more about What are defined contribution retirement plans?
What are cash balance plans? Q.What are cash balance plans? A.A cash balance plan is an employer-funded retirement plan, which grows by the employer’s annual contributions plus interest. As with other retirement plans, the amounts in a cash balance plan grow tax deferred (that is, they are not taxed until distribution). Read more about What are cash balance plans?