How is a defined benefit retirement plan different from an annuity plan?

How is a defined benefit retirement plan different from an annuity plan?
by

1 Answer

Answer :

A defined benefit plan is one that your employer pays for over the period of time you are employed with them. An annuity plan is a program that you invest in for your retirement. Both are payable at the time of your retirement. Defined plan is a fixed amount. Annuity depends on the terms of your contract.
by

Related questions

what are the advantages and disadvantages of a defined benefit retirement plan?

Description : what are the advantages and disadvantages of a defined benefit retirement plan?

Last Answer : The advantages of a defined benefit retirement plan is that you will be clear from the outset what benefits you will have and be able to plan accordingly throughout your work years. An major ... the terms within the plan to adjust for new conditions that might arise throughout your work year.

I have a retirement annuity that I cant touch for 12 more years. how do I get cash from it now?

Description : I have a retirement annuity that I cant touch for 12 more years. how do I get cash from it now?

Last Answer : I think you can sell it to someone else for current value and tranfer it to them.

Can I use an immediate annuity calculator to calculate how much I will have for my retirement?

Description : Can I use an immediate annuity calculator to calculate how much I will have for my retirement?

Last Answer : An imeediate annuity calculator are for people who are interested in immediate annuities. I would assume that you could use this calculator to calculate how much you will have for your retirement.

Who would benefit from a fixed annuity?

Description : Who would benefit from a fixed annuity?

Last Answer : Fixed annuities have a guaranteed interest rate for a set time period. So, if interest rates go up and you are locked into a rate you are the loser. But the reverse can also work, if rates ... So, either the person or financial group could be the loser depending upon what happens to interest rates.

What is the defined retirement age in the United States?

Description : What is the defined retirement age in the United States?

Last Answer : You can receive social security benefits at age 62. However, keep in mind that the percentage of benefits decreases the younger you receive them.

What is your retirement plan?

Description : What is your retirement plan?

Last Answer : I hope to be healthy and wealthy enough to travel. When I was married, we had a camper and our plan was to go all over the country in the camper. I have since decided that is way too much work and would rather travel by car or plane and stay in nice hotels.

How much is this employee contributing to his her retirement savings plan each pay period?

Description : How much is this employee contributing to his her retirement savings plan each pay period?

Last Answer : What is the answer ?

Pension Plan Retirement Options?

Description : Pension Plan Retirement Options?

Last Answer : Pension Plan Retirement OptionsChoosing between pension options can be a difficult task.Choosing an option that guarantees your spouse pension benefitsafter your death means extra security but also ... calculator to help decide which pension option works best foryour particular retirement needs.

How To Plan For Your Retirement?

Description : How To Plan For Your Retirement?

Last Answer : From annuities to Roth IRAs and from savings to ModifiedEndowment Contracts, retirement planning can be a littleoverwhelming. A person has to be aware of the many options thatthey have available ... insurance contracts which are designed to provideincome and assist you in achievement of long-term fi

Retirement Calculators: What Information Do You Need to Plan Your Retirement?

Description : Retirement Calculators: What Information Do You Need to Plan Your Retirement?

Last Answer : Retirement?For many, planning a first retirement from their beloved job canbe a scary and intimidating thing. There are calculators on theinternet that help you plan for your future a little better ... that deal with interests, pensions and savings. You caneither calculate this yourself, or find a

George Thriftless is 45 years old, earns $50,000 per year, and expects that his future earnings will keep pace with inflation, but will not exceed inflation. He has not yet saved anything toward his retirement. His company does not offer any pension plan.?

Description : George Thriftless is 45 years old, earns $50,000 per year, and expects that his future earnings will keep pace with inflation, but will not exceed inflation. He has not yet saved anything toward his retirement. His company does not offer any pension plan.?

Last Answer : George Thriftless is 45 years old, earns $50,000 per year, and expects that his future earnings will keep pace with inflation, but will not exceed inflation. He has not yet saved anything toward ... expects to receive $12,000 per year in Social Security benefits, he cal­culates that he will have t

Are there any circumstances where I can take an early withdrawal without penalty from a 401K retirement plan?

Description : Are there any circumstances where I can take an early withdrawal without penalty from a 401K retirement plan?

Last Answer : There are a number of restrictions and requirements regarding early withdrawals from a 401K. Additionally, the IRS regulations often change. Your best bet is to discuss your situation with your fund manager or consult with your tax professional.

Are mutual funds able to be held in a registered retirement savings plan?

Description : Are mutual funds able to be held in a registered retirement savings plan?

Last Answer : A registered retirement account can invest in stocks, bonds and mutual funds.

Can an individual contribute to an IRA and another retirement plan at the same time?

Description : Can an individual contribute to an IRA and another retirement plan at the same time?

Last Answer : Yes, individuals can contribute to a traditional IRA whether or not they are covered by another retirement plan Small catch... they may not be able to deduct all of their contributions if they ... retirement plan. Note that contributions to a Roth IRA are not deductible and income limits apply.

How does one contact a retirement plan administration?

Description : How does one contact a retirement plan administration?

Last Answer : www.gnapartners.com/ is where you can contact a retirement plan administration.

How to Set Up a 401k Retirement Plan Without an Employer?

Description : How to Set Up a 401k Retirement Plan Without an Employer?

Last Answer : Not everyone works for a company that supplies its employees with 401k retirement plans. Many companies simply do not offer them. Other people may be independent contractors or small business owners. Whatever ... income than what was contributed into the plan during a certain part of the tax year.

Developing a Plan for Retirement?

Description : Developing a Plan for Retirement?

Last Answer : Many young and middle aged adults are making the smart decision to plan for their future, and this involves developing a plan for retirement in their later years. It is common for working ... investments. Over time, your nest egg should grow more quickly with these different types of investments.

Never Touch Your 401k Retirement Plan?

Description : Never Touch Your 401k Retirement Plan?

Last Answer : When something big comes up, such as the need for a new car, you may be tempted to use the money in your 401k retirement plan to pay for it. This is possible, but it is not wise. ... gratification of a new purchase quickly, but you will not have enough money to retire comfortable in the long run.

Retirement Plan?

Description : Retirement Plan?

Last Answer : form_title= Retirement Plan form_header= Create your retirement plan and start saving now. At what age, do you want to retire?*= _ [50] How much are you putting to your 401k each month?*= _ [50] Does your employer match your contributions?*= () Yes () No () Not Sure

What is the best retirement savings plan to invest in?

Description : What is the best retirement savings plan to invest in?

Last Answer : The best retirement savings plan to invest in depends on your financial needs and what works for you. You should meet with a financial advisor and look at the different options available.

Are you penalized for withdrawing money early from your retirement pension plan?

Description : Are you penalized for withdrawing money early from your retirement pension plan?

Last Answer : Typically there is a fee for withdrawing money early from your retirement pension plan. However, there are exceptions to this rule. It is best to check with your specific provider to discuss your circumstances and learn their terms and conditions.

How does a 403b retirement plan differ from a 401(k) plan?

Description : How does a 403b retirement plan differ from a 401(k) plan?

Last Answer : It is always good to have a retirement plan you need to first decide what you want,this site http://www.nationwide.com/403b-retirement-plans.jsp will tell you about a 403b plan which differs from a 401k plan which is usually offered by your company.

What is a retirement plan calculator?

Description : What is a retirement plan calculator?

Last Answer : A retirement calcular takes your current age vs. the age you want to retire, the amount you may already have funded, the rate of interest you expect to draw vs. the amount you want to have at retirement and calculates your annual savings needed to reach that goal.

What is the tax consequence of the 401k retirement plan?

Description : What is the tax consequence of the 401k retirement plan?

Last Answer : A good tax consequence of a 401k retirement plan is that you can literally save money as the funds that are ususally tax-free. If you withdraw from your 401k plan, there is usually a large penalty.

How can I find a job with a retirement pension plan?

Description : How can I find a job with a retirement pension plan?

Last Answer : A retirement pension plan would be listed under benefits for any job you are considering. If you are fortunate to get an interview, make sure to ask specific questions about the retirement pension plan they are offering.

How does a 457 retirement plan work?

Description : How does a 457 retirement plan work?

Last Answer : A 457 retirement works by deducting any contributions out of your paycheck before the taxes come out. They are a great way to save money that is tax-deferred. Only those who are employed by nonprofit ... schools are eligible for the type of retirement plan. For more info please visit www.irs.gov.

Who can I talk to about my 401k retirement plan?

Description : Who can I talk to about my 401k retirement plan?

Last Answer : You can talk about your 401k retirement plan to people that know about retirement or companies that deal with retirement. Basically it is best to talk to people that deal with retirement.

Pension Retirement Calculator Helps Plan Your Retirement Years?

Description : Pension Retirement Calculator Helps Plan Your Retirement Years?

Last Answer : Employers in prior decades used to offer a fixed pension plan to their workers. This gave the workers a sense of security. They knew that after working for a certain number of years, they ... retirement. Most tools also include a Social Security calculator that will off set the pension amount. When

The use of antibiotics can be based on either the clinical course of a patient without the benefit of well-defined microbiologic data (empiric therapy), or targeted at specific identified pathogens once sensitivity reports are available (directed therapy). The following statement(s) is/are true concerning these therapies. a. The issue of toxic side effects of antibiotics is only important in dealing with emperic therapy b. Single agent therapy is generally inferior to specific multi-drug therapy (aminoglycoside plus an antianaerobic agent) for the treatment of secondary bacterial peritonitis due to appendicitis, diverticulitis, penetrating gastrointestinal injury, or anastomotic leak c. With the empiric use of antibiotics, a diligent search for the septic source should be undertaken and co

Description : The use of antibiotics can be based on either the clinical course of a patient without the benefit of well-defined microbiologic data (empiric therapy), or targeted at ... which polymicrobial infection is identified, specifically-directed treatment for the predominant organism is satisfactory

Last Answer : Answer: c The use of empiric therapy without the benefit of well-defined microbiologic data is appropriate when there is sufficient clinical evidence to support the diagnosis such that it would ... components of the infection if the body site is such that these microorganisms may be present

_____________ may be defined as the excess of present value of project cash inflows over that of out flows. A. Net present value technique. B. Average rate of return. C. Benefit-Cost ratio. D. Internal rate of return

Description : _____________ may be defined as the excess of present value of project cash inflows over that of out flows. A. Net present value technique. B. Average rate of return. C. Benefit-Cost ratio. D. Internal rate of return

Last Answer : A. Net present value technique.

___ is defined as systematic assessment of the social impact of the activities of a business firm. A. Social audit. B. Social responsibility. C. Social interaction. D. Social benefit

Description : ___ is defined as systematic assessment of the social impact of the activities of a business firm. A. Social audit. B. Social responsibility. C. Social interaction. D. Social benefit

Last Answer : A. Social audit.

Why is the annuity industry so backwards and difficult to work with?

Description : Why is the annuity industry so backwards and difficult to work with?

Last Answer : Didn’t you ask this question last month? https://www.fluther.com/229331/i-can-buy-my-own-stocks-through-sites-like-e-trade-and/

Take a lump sum, annuity, or pension?

Description : Take a lump sum, annuity, or pension?

Last Answer : I would take the roll over and reinvest it in an IRA so you don't pay taxes or penalty. The 22 a month isn't very much and if you take that, it will be about 6,000 by the time you are 65. If ... may not be alive. If you did leave the money where it is and take it out at 65, is it earning interest?

How can you invest the one time payout to match the yield of the lottery's annual annuity? (See details)

Description : How can you invest the one time payout to match the yield of the lottery's annual annuity? (See details)

Last Answer : answer:Assuming the lump sum is 77.4 million dollars, and you want to eventually get to 153 million (within the 30 years it would've taken to get the whole amount from them).... just invest ... read up a bit on the stock market and invest there and probably rather quickly make up that difference.

My parents opened an annuity trust with a company called Old Mutual, have you heard of them?

Description : My parents opened an annuity trust with a company called Old Mutual, have you heard of them?

Last Answer : I googled the name and came up with about 2 million results. Old Mutul Funds, Old Mutual Insurance, etc. You may want to have the complete name and look it up.

What is a monthly annuity?

Description : In one competition, the monthly rent is CZK 5,000 for one year, what does this mean?

Last Answer : this means that if you win they will send you 5000 CZK every month for 1 year

What annuity can individuals choose to invest purchase payments from a range of investment options which are typically mutual funds?

Description : What annuity can individuals choose to invest purchase payments from a range of investment options which are typically mutual funds?

Last Answer : variable annuity

What must happen when an individual policy or annuity has been delivered by hand to the policy owner?

Description : What must happen when an individual policy or annuity has been delivered by hand to the policy owner?

Last Answer : Need answer

Fixed Annuity Calculator?

Description : Fixed Annuity Calculator?

Last Answer : Fixed Annuity CalculatorA Fixed Annuity can provide a very secure, tax-deferredinvestment. It can provide a guaranteed minimum interest rate, withno taxes due on any earnings until they are withdrawn ... this calculator to help you determine how a FixedAnnuity might fit into your retirement plan.

Immediate Annuity Calculator?

Description : Immediate Annuity Calculator?

Last Answer : Immediate Annuity CalculatorAn immediate annuity is a product sold by insurance companiesthat is designed to provide you with an income stream for life. Theincome, by definition, is designed to ... . This calculator is designed to help you estimate yourmonthly payments from an immediate annuity.

Variable Annuity Calculator?

Description : Variable Annuity Calculator?

Last Answer : Variable Annuity CalculatorContributing to a Variable Annuity creates long termtax-deferred growth. Use this calculator to see how a VariableAnnuity might fit into your retirement plan.

Advantages and Disadvantages of a Fixed Annuity?

Description : Advantages and Disadvantages of a Fixed Annuity?

Last Answer : Fixed annuities offer a low risk investment option with a very reliable and steady income. Unfortunately, when dealing with investments, low risk typically means a lower rate of return, which ... inflation protection. Annuities are designed to provide income starting at the time of retirement and co

What is an annuity payout?

Description : What is an annuity payout?

Last Answer : An annuity payout is cash recieved from an annuity that you build through investment. There are several types of annuity payouts, such as the Life option, which pays retirement based on your life expectancy, ... on your fixed annuity payment that you recieve if you wish to have all your money now.,

What is the largest annuity payout possible?

Description : What is the largest annuity payout possible?

Last Answer : Annuities with the Highest Immediate Annuity Payouts and the Highest Annuity Interest Rates available. Immediate Annuities, Fixed Deferred Annuities www.jdsannuities.com/ The largest annuity payout possible ... . You must get really lucky and you should understand investments comes with risk.

How does a cash annuity settlement work?

Description : How does a cash annuity settlement work?

Last Answer : A cash annuity is usually work by the person receiving the annuity is getting a montly fund which can pre-taxed or you will have to take the taxes out every year. Many people do not like the monthly so they try to sell it order to get a lump sum.

What are some important things to know regarding annuity payments?

Description : What are some important things to know regarding annuity payments?

Last Answer : Important things to know are how much you are being charged and the amount you can expect. Also, you may want to know how long the payments will last and if they are taxable.

Do annuity rates remain steady or are they variable?

Description : Do annuity rates remain steady or are they variable?

Last Answer : This actually depends on the annuity. A "fixed" annuity always gets you the same rate, while the rate of a "variable" annuity is indexed to some other rate, usually the federal prime rate. Rates are variable over the long term. It is possible to lock a steady rate in but it costs more to do so.

What is structured annuity?

Description : What is structured annuity?

Last Answer : A structured settlement annuity is an agreement where an insurance company will pay an individual the predetermined amount of money over a finite period of time.

What is an annuity settlement?

Description : What is an annuity settlement?

Last Answer : An annuity settlement is a payment to an individual for a settlement, typically from an insurance claim. It's basically any type of settlement for legal suit or other such cases.

What are the current rates for Fixed Annuity in Omaha, NE?

Description : What are the current rates for Fixed Annuity in Omaha, NE?

Last Answer : fixed annuity rates effective from 4-15-09 can be found at http://www.rasberryagency.com/images/MofORates.pdf