Question: How do defined contribution plans differ from defined benefit pension plans, and why have most employers switched from defined benefit plans to defined contribution plans?

How do defined contribution plans differ from defined benefit pension plans,

How do defined contribution plans differ from defined benefit pension plans, and why have most employers switched from defined benefit plans to defined contribution plans? Pension plans must be qualified" in order to receive favorable federal income tax treatment. List two characteristics of plans that are necessary for them to be qualified. Explain the benefits of these characteristics for employees. How does a ROTH IRA differ from a Traditional IRA? Which type of IRA is recommended for younger workers? Explain why. a How do defined contribution plans differ from defined benefit pension plans, and why have most employers switched from defined benefit plans to defined contribution plans? Pension plans must be qualified" in order to receive favorable federal income tax treatment. List two characteristics of plans that are necessary for them to be qualified. Explain the benefits of these characteristics for employees. How does a ROTH IRA differ from a Traditional IRA? Which type of IRA is recommended for younger workers? Explain why. a

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