DEFINITION of 'DB(k) Plan'

A retirement plan that combines some of the characteristics of a 401(k) plan with those of a defined benefit (DB) plan. Funds can be voluntarily contributed to the DB(k) plan just as they can with a 401(k) plan, with the employer retaining the option to match the funds up to a certain percentage. Upon retirement, the employer will also pay the employee a small percentage of his or her salary, which is similar to a traditional pension.

The DB(k) plan was included in the Pension Protection Act of 2006.


The DB(k) plan was designed to provide businesses with a way to attract employees, since many investors worry that their entire savings could be wiped out in a down market. Retaining the pension characteristic means that the retiree will still have a source of income, regardless of the performance of the 401(k) portion of the plan.

  1. Qualified Retirement Plan

    A qualified retirement plan meets the requirements of Internal ...
  2. Employee Contribution Plan

    An employee contribution plan is an employer-sponsored savings ...
  3. Past Service

    Service to an employer that is recognized for the defined benefit ...
  4. Target-Benefit Plan

    A benefit plan that is similar to a defined benefit plan since ...
  5. Employer-Sponsored Plan

    An Employer-Sponsored Plan is a benefit plan offered to employees ...
  6. Unit Benefit Plan

    An employer-sponsored pension plan that provides retirement benefits ...
Related Articles
  1. Retirement

    401(k) Investing for Military Veterans

    Military personnel have access to a thrift savings plan, which is similar to a 401(k) plan.
  2. Retirement

    10 Providers With 401(k) Plans for Small Employers

    If you're a small business that has steered clear of a 401(k) plan for your employees, find out how these providers can make it easier.
  3. Retirement

    Is Your 401(k) Being Mismanaged?

    401(k) plans managed by the wrong people can be hazardous to your future!
  4. Retirement

    New 401(k) Pension Rollover Rule: Pros and Cons

    Is the new rule allowing participants to roll their 401(k) balances into pensions a good idea?
  5. Retirement

    This Is Why Your Employer Should Offer a 401(k)

    Understand the unique benefits that come with a small business offering a retirement savings plan such as a 401(k) to current and future employees.
  6. Retirement

    Why Your 401(k) Plan Requires An Expert Evaluation

    Many smaller companies don't have the in-house expertise or resources to properly evaluate a 401(k).
  7. Retirement

    Introduction To SIMPLE 401(k) Plans

    Learn about the features and benefits of the plan that is a cross between a SIMPLE IRA and a traditional 401(k) plan.
  8. Retirement

    My Employer Doesn't Offer a 401(k). Should I Care?

    Find out what do if your employer doesn't offer a 401(k) retirement savings plan, including alternative investment options and whether to switch jobs.
  9. Investing

    Understanding 401(k)s and All Their Benefits

    A quick guide to understanding 401(k) advantages, from tax savings to shelter from creditors.
  10. Retirement

    5 Companies With the Best Retirement Plans

    Ever wonder how your company retirement plan stacks up against the country's best employers? Take a peek at these great retirement plans.
  1. What is the difference between a DB(k) plan and a 401(k)?

    Learn the differences between a traditional 401(k) plan and a DB(k) plan. The hybrid DB(k) can provide a guaranteed income ... Read Answer >>
  2. What is the difference between a DB(k) plan and a defined benefit plan?

    Learn the differences between a traditional defined-benefit plan and the emerging DB(k) plan to see how employer-sponsored ... Read Answer >>
  3. Who offers 401(k) plans?

    Find out who can offer 401(k) retirement plans. Also discover how a 401(k) plan can benefit both business owners and their ... Read Answer >>
Hot Definitions
  1. Entrepreneur

    An Entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture. ...
  2. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  3. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  4. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  5. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  6. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
Trading Center