FAQ

We have provided answers to many of the frequently asked questions about insurance needs and terms in this section.  Feel free to browse or use the term or keyword search to quickly identify answers to specific question you might have.  If you don't find what you are looking for please contact us with your specific needs and we will find an answer to your question.

Keywords: :
401(K) and Group Retirement

What is a Defined Benefit Plan?

A defined benefit plan promises a specified monthly benefit at retirement. The plan may state this promised benefit as an exact dollar amount, such as $100 per month at retirement. Or, more commonly, it may calculate a benefit through a plan formula that considers such factors as salary and service for example, 1 percent of average salary for the last 5 years of employment for every year of service with an employer. The benefits in most traditional defined benefit plans are protected, within certain limitations, by federal insurance provided through the Pension Benefit Guaranty Corporation (PBGC).  Please call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs

What is a Defined Contribution Plan?

A defined contribution plan, on the other hand, does not promise a specific amount of benefits at retirement. In these plans, the employee or the employer (or both) contribute to the employee's individual account under the plan, sometimes at a set rate, such as 5 percent of earnings annually. These contributions generally are invested on the employee's behalf. The employee will ultimately receive the balance in their account, which is based on contributions plus or minus investment gains or losses. The value of the account will fluctuate due to the changes in the value of the investments. Examples of defined contribution plans include 401(k) plans, 403(b) plans, employee stock ownership plans, and profit-sharing plans.  Please contact us  or call for an appointment so that we can review your situation and provide you with a personalized estimate considering your particular needs
Next
Welcome | Our Services | About Us | Employee Assistance | Employer Assistance | Library | Contact Us | Site Map
FINRA broker check Securities offered by The Tavenner Company 4910 Old Mechanicsburg Road, Springfield, Ohio 45502 Telephone: 800-543-6922 Member of FINRA-SIPC-MSRB.

© 2004-2018. Created and maintained by Fitting & Zidd

The Zidd Agency, Inc.