how is a defined contribution plan different from a defined benefit plan 
with a db plan retirement income is guaranteed by the employer and computed using a formula that considers several factors such as length of employment and salary history dc plans offer no such guarantee don t have to be funded by employers and are self directed can i cash out my defined contribution pension plan it s usually necessary to keep money in the plan until you reach age 59 you may be hit with a 10 penalty on top of any income tax you may owe if you make a withdrawal before then 5