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What Is A 401(k) Retirement Plan?: A Beginner's Guide ...
A 401 (k) retirement plan is an employer-sponsored retirement plan, which means that it’s funded in cooperation with your employer. There are two types of employer-sponsored retirement plans: a “defined-benefit plan” and a “defined-contribution” plan. A 401 (k) is a defined-contribution plan while a pension is considered a defined-benefit plan.
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