Which Pension Plan Is Best?

  1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    The best pension plan in my humble opinion is an employer sponsored 401(k) defined contribution plan under ERISA (Employee Retirement Income Security Act of 1974) But the real value of a 401(K) retirement plan is the optional employer contribution match which can be as high as 6% of your base salary.The pretax contributions save taxes today. The accounts accumulate tax deferred. And at distributions are taxed as ordinary income.
    Answered on August 18, 2013
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  2. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Which pension plan is best? The best pension plan is the one you PARTICIPATE in. There are different plans used in both individual and business situation. The best really comes down to you choosing to set money aside in one of them for later retirement use. There isn't a best one, there is yours, be it an IRA or a 401k or if you're lucky enough a defined benefit plan. The best is the one your actively in. Matching, vesting and such, don't matter if you aren't participating.
    Answered on October 9, 2015
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