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Defined Contribution Plan Definition

A defined contribution plan is a form of retirement savings that offers a tax-advantaged account for employees to contribute to. This can be done individually or with the help of their employer. Contributions and growth within the account are typically tax-free until withdrawal, with the exception of Roth options. This means that in defined contribution plans, the responsibility for investment risks and potential gains lies with the employee, not the employer. While some employers may offer matching contributions, the final decision to invest ultimately rests with the employee.

Profit-Sharing Plan Definition

A profit-sharing retirement plan allows employers to decide on annual contributions to their employees' tax-deferred accounts. These contributions are distributed based on a...

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Life Cycle Fund

A life cycle fund, also known as a target date fund, is a type of mutual fund that adjusts its level of risk according to the age of its owner. As the investor approaches re...

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Roth IRA Conversion

When considering the distribution of assets from a Traditional IRA into a Roth IRA, it is important to understand the potential tax implications. A Traditional IRA allows fo...

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Qualified Retirement Plan

It is designed to provide retirement benefits to employees. A retirement plan, whether Defined Benefit or Defined Contribution, is a crucial component of financial plannin...

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