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Ask A CPA - Keogh Plans

What Is A Defined-Benefit Plan?

A Defined-Benefit Plan is a type of Keogh plan. It is a employer-sponsored retirement plan where employee benefits are calculated based on a formula using factors such as salary history and duration of employment. Investment risk and portfolio management are entirely under the control of the company. There are also restrictions on when and how you can withdraw these funds without penalties.

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