How are defined benefit plans different from defined contribution plans? How are they similar?

Defined benefit plans expound the benefits the employee will eventually receive when they retire. Contrary to defined contribution plans, set out a maximum yearly quantity that employees and employers can contribute to the plan. The employers finance the defined contribution plans, whereas the employee funds the defined benefit plans. The two plans are mainly categorized as retirement plans that qualify and are provided by the employer, and it also has related rules for vesting as well as required distribution.

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