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Defined Contribution

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Defined Contribution

Formally known as a Defined Contribution account, similar to a 401k just for public (government) and nonprofit organizations. This account is an employee sponsored plan where the employee and employer both contribute. Employer has a greater share of say of what the funds are invested in. Participation in this plan is typically mandatory, however the contribution limits are set by the employer often times. Contribution rates, types and levels are adjusted by the retirement plan edition provided by each individual State. Other benefit options within these organizations are 403(b) and Roth 403(b), Deferred Compensation and a Defined Benefit plan (Pension). 401(a) plans are deferred tax plans. The contributions go in before taxes are taken out of the check and are taxed once they are taken out. (tax-advantage plan)

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Disclaimer

Dyal Financial and our “guards” (advisors) are not an attorney of law, a certified public accountant or broker dealers.

Our firm provides links to third party articles in an effort to assist users in locating information on topics that might be of interest to them. Information presented has not been verified and is not guaranteed, nor can we attest to the accuracy of information provided. Linking to an article or web site does not constitute a representation of the services offered by our firm nor does it constitute an endorsement by Firm of the sponsors of the site or the products presented on the site. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.

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