Qualified Accounts - Sponsored Flashcards
What are the two types of sponsored retirement plans
defined benefit plans
defined contribution plans
What are defined benefit plans also known as
traditional pension plans
What are pension plans
compensation to replace pre-retire income based on
years of service
age
salary at retirement
How do pensions figure out their contribution amount to pay for their employees when they retire?
outside consultation
What risk does the pensioner take on when they start p[ullign from their pension
purchasing power risk bec amount doesnt change with inflation
Whats a benefit of a pension from a gov agency
they might have a cost of living adjustment
What are the types of defined contribution plans
401k
403b
profit sharing
money purchase
SIMPLE
Benefit of a defined contribution plan vs a defined benefit plan
contrib plans can be moved to another employer or to an IRA
