Types of Retirement Plans
The laws of each jurisdiction determine the types of retirement plans that qualify for special tax benefits. The distinctions among the various types of plans in any jurisdiction are important because the regulatory requirements imposed on retirement plans often vary somewhat depending on the type of plan. In any case, the specific provisions of a given retirement plan govern the operation of that plan. In the United States, four general types of employer-sponsored retirement plans are: (1) defined benefit pension plans, (2) savings plans (3) profit sharing plans, and (4) stock bonus plans.