Anyone familair with defined benefit or defined contribution plans?

[Enda80]

http://public.findlaw.com/mboards/webx.html?14@111.oRBYdedviC6%5E0@.ef068a3/1977

IRC Code 414(u) military deferral, Rev Proc 96-49, CFR
1002262, IRC 414 (U)(3), DOL Reg. 20 CFR 1002.265(c)

Please respond directly to docsavage80@yahoo.com

I was doing some research on these topics. I have a
brother in the military. Does anyone have any info on
how this applies to a benefit plan.

t has to do with military leave. What happens if the employee benefit plan has a last day provision, and the employee goes off for his or her military service before the last day of the year? Does the employer have to make a contribution for that year?

Also, anyone with any info on plan terminations?

[ED SMITH]

I suggest you post your question on the Fairmark message board. It is operated by Kaye Thomas, who is an expert on retirement planning. This is a highly specialized and complex field in which most of us tax preparers have only limited knowledge.

The URL:

http://www.fairmark.com/

[John of PA]

Question?

Enda80, what is your question? the difference?
Defined Contribution envolves extensive administration fees as your contribution is based on actuarrial computations based on a set retirement pension amount (ex; 80% last 3 yrs ave. salary), the payoff is that a larger deduction is allowed. Defined contribution plan is like an IRA or SEP where the contribution is easy to compute, or even discretionary (can skip it if you want); but, your retirement pension will only be whatever the account grows to, which may or may not meet your goals. (ex: profit sharing plan) Hope this helps.