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What is Retirement Plan?
Definition -
A Retirement Plan is a plan provided by an employer or a self-employed individual for an
employee's or self-employed individual's retirement. Because of the tax advantages,
most retirement plans are designed to insure a present deduction to the employer while
the employee is permitted to avoid recognizing the income until he has actually or
constructively received it.
A few examples of Retirement Plans are:
· Section 401 (k) Plans,
· Profit Sharing Plans,
· Defined Benefit Plans,
· Simplified Employee Pension Plans (SEPs),
· Individual Retirement Plans (IRAs),
· Roth Individual Retirement Plans (Roth IRAs),
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