This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- The critical difference between defined benefit and defined contribution plans is who assumes the investment risk: the employer or the employee.

- Employee contributions to a 401(k) are always 100% immediately vested, meaning they belong to the employee from day one.

- Employer contributions, such as matching funds, are subject to vesting schedules, with ERISA setting maximums of either a three-year cliff or a six-year graded schedule.

- A profit-sharing plan is a type of defined contribution plan that gives the employer discretion on whether to make contributions each year.

- The Series 65 exam tests these concepts through scenario-based questions requiring you to apply vesting rules and differentiate between plan types based on risk.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep