Question: What is the difference between a defined benefit and a defined contribution retirement plan? Defined benefit plans limit employee contributions while employed. Defined benefit plans

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

  • Defined benefit plans limit employee contributions while employed.
  • Defined benefit plans allow employees to set aside money on a tax-exempt basis.
  • Defined contribution plans allow employees to contribute a set amount toward their retirement plan while employed.
  • Defined contribution plans allow employees to determine a specific amount of money they wish to receive upon retirement.

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