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Many workers depend on plans 【B1】by their employers to help pay for their ret
Many workers depend on plans 【B1】by their employers to help pay for their ret
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2023-09-15
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Many workers depend on plans 【B1】by their employers to help pay for their retirement. There are two major kinds of retirement plans. One is defined by what is paid out, the other by what is paid in.
The first is called a defined 【B2】plan, or pension. It provides set 【B3】based on the number of years an 【B4】has worked: These plans often pay for health care and other costs. They might also provide money to family members when the 【B5】dies.
Pensions, however, can be a big cost to employers. In the United States, the change from a 【B6】economy to a service economy has resulted in fewer and fewer 【B7】plans.
The other major kind of retirement plan is called a defined 【B8】plan. Two things define how much a worker will get at retirement. 【B9】.
One popular version is a four-oh-one-k plan, named after a part of the tax law. 【B10】.
But some plans are very complex. An easier way for small employers to offer retirement savings is through a Savings Incentive Match Plan. 【B11】.
Many workers depend on plans offered by their employers to help pay for their retirement. There are two major kinds of retirement plans. One is defined by what is paid out, the other by what is paid in.
The first is called a defined benefit plan, or pension. It provides set payments based on the number of years an employee has worked. These plans often pay for health care and other costs. They might also provide money to family members when the pensioner dies.
Pensions, however, can be a big cost to employers. In the United States, the change from a manufacturing economy to a service economy has resulted in fewer and fewer traditional plans.
The other major kind of retirement plan is called a defined contribution plan. Two things define how much a worker will get at retirement. The first is how much both the worker and the employer paid into the plan. The other is the performance of its investments.
One popular version is a four-oh-one-k plan, named after a part of the tax law. It offers investments for workers to put money into. Their employer usually adds to the savings.
But some plans are very complex. An easier way for smell employers to offer retirement savings is through a Savings incentive Match Plan. It permits contributions of up to ten thousand dollars a year toward retirement.
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