Plans Come in Many Shapes and Sizes
While employer-sponsored plans can go by different names, they all have something in common: They are valuable benefits designed to help you move closer to a financially secure future when you retire.
Ask your employer what type of plan is in your benefits package and then use this site to learn more about it.
Most plans fall into one of two categories: a “defined contribution” plan such as a 401(k) or a traditional “defined benefit” plan
Defined Contribution Plans
Defined contribution plans are funded primarily by your own contributions. These retirement accounts can grow based on the amount contributed and investment returns. Common defined contribution plans include 401(k), 403(b) and 457 plans.
Defined Benefit Plans
Defined benefit plans are also known as pension plans. The benefit, usually in the form of a monthly income, is determined by a formula based on criteria such as length of employment and salary.
