Overview - Chapter 4
To-Do Date: Mar 30 at 11:59pmTopic
Employer-Sponsored Retirement Plans
Objectives
In chapter four, you will gain an understanding of how employer-sponsored retirement plans are defined, including the following:
Differences between qualified plans and nonqualified plans (and what that means)
Features of defined benefits plans and defined contribution plans
Specific types of defined contribution plans
Features of various hybrid plans
We learned in chapter three that retirement plans function by providing retirement income to employees or result in a deferral of income by employees for periods extending to the termination of covered employment or beyond, regardless of the methods of calculating the contributions made in the plan, the method of calculating benefits under the plan, or the method of distributing the plan.
Chapter 4 reviews three main categories of employer-sponsored retirement plans and specific practices within each category.
Weekly Schedule
| Activity | Estimated time required | |
|---|---|---|
| Reading: Chapter Four: Employer-Sponsored Retirement Plans | 30-45 minutes | |
| Discussion: Most people work to fund basic needs (food, shelter) and wants (vacations, material items). While needs and wants may change over time, we will always have them, even in retirement. With those caveats in mind, do you think you should invest in a section 401K retirement plan? If you choose to invest, what percentage of your pay will you defer to the 401K plan? Why? For full credit, please respond to a classmate's post in at least 50 words. Your initial post should be at least 100 words. | 30 minutes | |
| Writing Assignment: In at least 100 words, please respond to the following: What is the main difference between defined benefit plans and defined contribution plans? In your response, please define each type of plan and briefly discuss the pros and cons of each. | 30 minutes |