Question: What is the difference between a defined benefit and a defined contribution retirement plan? Defined benefit plans allow employees to set aside money on a

What is the difference between a defined benefit and a defined contribution retirement plan?

Defined benefit plans allow employees to set aside money on a tax-exempt basis.

The employer guarantees a specific retirement income for defined benefit plans.

Defined benefit plans allow employees to determine a specific amount of money they wish to contribute toward their retirement plan.

Defined contribution plans allow employees to determine a set amount to receive during retirement.

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