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PENSIONS AND DIVORCE
The Basics Of Pension Plans
It is not the purpose of this overview to furnish legal or accounting advice. It should be considered a somewhat detailed "sketch" and can serve as a reasonable guideline, although its accuracy is compromised both by new legal decisions and by factors which have been omitted for the sake of brevity.
A pension plan is a tax deferred savings plan. Typically, during years of employment, monetary contributions are made by the employee and/or on behalf of the employee by the employer to a retirement plan. The contributions and the earnings generated accumulate over time, tax free, until retirement. Upon retirement, the employee will receive a specific monthly income for life or a lump sum payment. There are two general types of retirement plans: the Defined Benefit Plan and Defined Contribution Plan.
Types of Retirement Plans
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It is not the purpose of this overview to furnish legal or accounting advice. It should be considered a somewhat detailed "sketch" and can serve as a reasonable guideline, although its accuracy is compromised both by new legal decisions and by factors which have been omitted for the sake of brevity.
A pension plan is a tax deferred savings plan. Typically, during years of employment, monetary contributions are made by the employee and/or on behalf of the employee by the employer to a retirement plan. The contributions and the earnings generated accumulate over time, tax free, until retirement. Upon retirement, the employee will receive a specific monthly income for life or a lump sum payment. There are two general types of retirement plans: the Defined Benefit Plan and Defined Contribution Plan.
Types of Retirement Plans
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