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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.

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  3. 6 Problems With 401k Plans

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  6. The Demise Of The Defined-Benefit Plan

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  7. Pension Plans: Pain Or Pleasure?

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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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