Retirement 101

What are the most common types of defined contribution plans?

The type of defined contribution plan you have may depend on where you work, but it is most likely one listed below.

• 401(k) plans are offered by private companies. Some nonprofit and governmental employers and unions offer this type of plan too.
• Money purchase plans are offered by private companies and by unions.
• 403(b) plans are offered to those who work for public schools and many other nonprofit organizations.
• 457 plans are for state and municipal employees, as well as employees of certain nonprofits.

If you have worked for more than one employer, you may have more than one type of plan. All of these plans are called "defined contribution plans" because you and/or your employer contribute to the plan. Some employers refer to these plans simply as “retirement savings plans.”