We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.


412(i) Plan

  

Think: 401k Plan...with teeth (biting the employer). Why? Because it's a defined benefit program (versus a defined contribution program). In a defined benefit program, the employer guarantees a minimum investment return from the employees' invested funds. If those investments fall short, the employer must write a check to make up the difference.

Related or Semi-related Video

Finance: What is a 529 Savings Plan?4 Views

Up Next

Finance: What is a Pension?
31 Views

What is a pension? Pensions are just retirement plans. Employers provide them and pay into funds as an investment for their employees. Once employe...

Finance: What Do You Need to Retire?
209 Views

What do you need to retire? Retirement - think: 401k, pension fund, IRA, roth IRA, etc. All of these savings socked away while you worked hard are...

Finance: How to Stay Rich
91 Views

How do you stay rich after you...get rich? The focus: index funds, mutual funds, way more stocks than bonds. Three words: don't be stupid.

Find other enlightening terms in Shmoop Finance Genius Bar(f)