Types of Retirement Plans

Free CFP Exam lesson in Retirement Savings and Income Planning. 15 min read, ~2,185 words.

Defined benefit: employer bears investment risk, promises a formula-based benefit. Max benefit: $290,000/year (2026). Best for older, high-income owners. 401(k): $24,500 deferral ($8,000 catch-up 50+, $11,250 catch-up 60-63). Employer match/profit-sharing up to $72,000 Section 415(c) limit. 457(b) limits are independent of 401(k)/403(b), dual participants can double deferrals. Governmental 457(b) distributions...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• F.47

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