Types of Retirement Plans

Free CFP Exam lesson in Retirement Savings and Income Planning. 15 min read, ~2,291 words.

Defined benefit shifts investment risk to the employer with a formula-based benefit (max $290,000/year in 2026), best for older, high-income owners; defined contribution leaves the risk with the employee. 401(k): $24,500 deferral, $8,000 catch-up (50+), $11,250 enhanced catch-up (60-63); employer match/profit-sharing up to the $72,000 Section 415(c) limit. 457(b) limits...