A cash balance pension plan is a defined-benefit plan with the option of a lifetime annuity. The employer credits a participant’s account with a percentage of their yearly compensation plus interest charges for the plan.

Related Terms

  • Variable Annuity

  • Traditional IRA

  • SIMPLE IRA

  • SEP IRA

  • Roth IRA

  • Rollover / Contributory IRA

  • Joint

  • Individual 401(k)

  • Individual

  • Fixed Annuity

  • Designated Beneficiary (TOD)

  • Deferred Profit-Sharing Plan (DPSP)

  • Custodial

  • Corporate

  • 401(k)