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Group 1: The Most Common Types of Retirement Plans Defined Contribution Plans
 
What is a DefinedContribution Plan?
A company retirement plan, such as a 401(k)plan or 403(b) plan, in which the employeeelects to defer some amount of his/her salaryinto the plan and bears the investment risk. This type of plan was created so thatemployers could provide a retirement plan fortheir employees but not bear theresponsibility of the completion of the plan.
www.free-retirement-plan.co
 
History of DefinedContribution Plans
 The pension plans in the U.S. predated thecountry’s independence and were sponsoredby the military.
 The next step was when companies madecontributions based on the companies profitinto a plan.
Companies later allowed employees to defer aportion of non-salaried compensation into aretirement plan.
In 1981, Johnson Companies designed a planwhere employees could defer a portion of their own salary on a pre-tax basis. Withinmonths, the I. R. S. issued reulations on
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