Question 1

What is a Defined Benefit (DB) plan?

Accepted Answer

A DB plan (like a pension) guarantees a specific monthly benefit at retirement, often based on salary and years of service.

Question 2

What is a Defined Contribution (DC) plan?

Accepted Answer

A DC plan (like a 401k) is a retirement account where you contribute a certain amount. The final balance depends on contributions and investment performance.

DB vs DC Plan Calculator