How do the differences of a defined benefit plan and defined contribution plan’s affect tax planning?
Also, how do they affect financial planning of the individual tax payer
Please answer in as much detail as possible.
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
June 25th, 2010 at 4:36 am
This isn’t a homework board.
Give your answer and justify it and we’ll be happy to critique your work. We’re not going to do it for you.
June 25th, 2010 at 4:39 am
exactly what it says, a defined benefit is one you select the amount you wish to take when you decide to retire, it will require a very large contribution to get it established, and these plans are not easy to find
the defined contribution is exactly that, you have a specific amount you contribute for the time you have the plan in effect, your distribution will depend on how much you overall contribute along with the earnings over the years