Defined Contribution Plan

Definition - What does Defined Contribution Plan mean?

A qualified retirement plan that details the amount of money that the employer will contribute to the plan for the benefit of the employee. This amount is usually expressed as a percentage of the employee’s gross annual income. The actual retirement benefits are not known until the employee reaches retirement and the amount of the retirement benefit is a result of the contributions to the plan, along with the investment experience of the plan.

Testopedia explains Defined Contribution Plan

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