Definition
Defined Benefit Plan
A qualified employer plan that promises a specified retirement benefit, typically based on pay and service.
Full definition
A defined benefit (DB) plan promises participants a specific monthly benefit at retirement, calculated by formula. The employer bears the funding and investment risk. DB plans are common host plans for 401(h) accounts because they have actuarial structure and trust mechanics already in place.
Related terms
Availability, tax treatment, and plan design depend on the facts and circumstances of the employer, plan document, participant group, and applicable law. 401h.com provides general educational information only — not tax, legal, actuarial, investment, or ERISA advice. Consult qualified tax, legal, actuarial, and plan professionals.