Defined-Contribution Plan

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Dictionary Says

Definition of 'Defined-Contribution Plan'

A retirement plan in which a certain amount or percentage of money is set aside each year by a company for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties.
Investopedia Says

Investopedia explains 'Defined-Contribution Plan'

There is no way to know how much the plan will ultimately give the employee upon retiring. The amount contributed is fixed, but the benefit is not.

Articles Of Interest

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  2. A Primer On Defined-Benefit Pension Plans

    Most of us will rely on a pension plan in the future, so it's best to know the details of the various plans before signing up.

  3. 6 Problems With 401k Plans

    If you pay attention to the problems here, you will be able to avoid the negative effects and meet your retirement goals.

  4. 3 Retirement Account Rules To Know

    Stay up-to-date on regulation amendments to avoid penalties as well as take advantage of new opportunities.

  5. The Defined-Benefit Plan's Many Problems

    The shift in retirement plan schemes - from defined benefit plans to defined contribution plans - raises some important issues.

  6. The Demise Of The Defined-Benefit Plan

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  7. Pension Plans: Pain Or Pleasure?

    Employees have a love/hate relationship with this retirement option.

  8. The 4-1-1 On 401(k)s

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  9. Thrift Savings Plan Helps Federal Workers Retire

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  10. Who bears the investment risk in 401(k) plans?

    Who actually bears the investment risk in a pension plan depends on the type of pension plan that is employed. In a broad sense, there are two benefit formulas that will calculate the pension ...
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