Defined-Contribution Plan


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.


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BREAKING DOWN '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.

  1. Withdrawal Benefits

    The rights of an employee who has a qualified pension plan to ...
  2. Fully Funded

    A pension plan that has sufficient assets needed to provide for ...
  3. Advanced Funded Pension Plan

    A pension plan that is funded concurrently with the employee's ...
  4. Defined-Benefit Plan

    An employer-sponsored retirement plan where employee benefits ...
  5. Pension Plan

    A type of retirement plan, usually tax exempt, wherein an employer ...
  6. Cash Balance Pension Plan

    A pension plan under which an employer credits a participant's ...
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