This course covers the types, characteristics, and advantages and disadvantages of qualified defined contribution retirement plans available to U.S. businesses and self-employed individuals. Included in this course are explanations of the following types of defined contribution plans: profit sharing plans, stock bonus plans, employee stock ownership plans, money purchase pension plans, target benefit pension plans, age-weighted profit sharing plans, and cross-tested profit sharing plans.

4–1 Describe the basic characteristics of defined contribution plans.
4–2 Describe the basic characteristics of profit sharing plans.
4–3 Describe the basic characteristics of stock bonus plans.
4–4 Describe the basic characteristics of employee stock ownership plans (ESOPs).
4–5 Describe the basic characteristics of money purchase plans.
4–6 Describe the basic characteristics of target benefit plans.
4–7 Describe the basic characteristics of age-weighted profit sharing plans.
4–8 Describe the basic characteristics of cross-tested profit sharing plans.
4–9 Describe similarities and differences among defined contribution plans.

Author: Michael B. Cates, MS, CFP®

Michael B. Cates, MS CFP® joined the College in 1986, and is the professor for the Income Tax Planning course of the CFP Certification Professional Education Program.  He received his CFP® certification in 1995, and completed the College's Master of Science degree program in 1997.  Mike is also the lead professor for the introductory Income Tax Planning cours ein the College's master's program.  In addition to his responsiblities at the College, Mike also maintains a tax planning and preparation firm in Aurora, Colorado.  You can reach Mike at mike.cates@cffp.edu

Complexity Level: Intermediate