| Defined-Benefit Plan | |
 An employer-sponsored retirement plan for which retirement benefits are based on a formula indicating the exact benefit that one can expect upon retiring. Investment risk and portfolio management are entirely under the control of the company. There are restrictions on when and how you can withdraw these funds without penalties. |
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 This fund is different from many pension funds whose payout is somewhat dependent on the return of the invested funds. The payouts made to retiring employees participating in this defined-benefit plan are determined by factors such as salary history and the duration of employment. |
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 Introductory Tour through Retirement Plans - Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it. Keeping Track Of Your Assets - Maintain records of your pension benefits or risk losing them. |
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Related Terms
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