DEFINITION of 'Retirement Contribution'

A monetary contribution to a retirement plan. Retirement contributions can be pretax or after tax, depending on whether the retirement plan is qualified, how much the contribution is in relation to the contributor's income, and whether the contributor has made previous contributions that would limit tax deductibility.

BREAKING DOWN 'Retirement Contribution'

In most corporate, private and government retirement plans, an employee's retirement contribution is matched in some way by the employer. This is referred to as an "employer match", rather than a contribution.

RELATED TERMS
  1. Matching Contribution

    A type of contribution an employer chooses to make to his or ...
  2. Pretax Contribution

    Any contribution made to a designated pension plan, retirement ...
  3. Additional Voluntary Contribution ...

    An extra allocation of funds to a retirement savings account ...
  4. Nonelective Contribution

    A type of contribution an employer chooses to make to each of ...
  5. After-Tax Contribution

    A contribution made to any designated retirement or any other ...
  6. Annual Addition

    The total dollar amount contributed in a given year to a participant's ...
Related Articles
  1. Retirement

    401(k) Planning: How Much Should You Be Saving?

    We look at how much you should contribute to your 401(k) and when. And also, how much you should have in your account during certain times in your life.
  2. Retirement

    It’s Never Too Late to Contribute to Your 401(k)

    Find out why it is never the wrong time to start contributing to a 401(k), even in your late 30s, 40s or 50s; discover how to maximize your savings at any age.
  3. Retirement

    401(k) Contribution Limits in 2016

    Find out what the contribution limits are for 401(k) retirement savings plans in 2016, including individual, employer and aggregate limits.
  4. Retirement

    8 Essential Tips For Retirement Saving

    These eight tips can help your retirement savings grow.
  5. Retirement

    Why are 401(k) contributions limited?

    Find out why contributions to 401(k) retirement plans are limited, including what the current contribution limits are and how limits encourage participation.
  6. Retirement

    How to Save More for Your Retirement

    Be sure you know all the tax-advantaged ways in which you can save more for retirement.
  7. Financial Advisor

    What's a Qualified Retirement Plan?

    Employers establish qualified retirement plans to help their employees save money.
  8. Retirement

    Top Tips For Maxing Out Your Retirement Account

    If you are behind in your retirement plan contributions for the year, this is the time to figure out how to catch up.
  9. Financial Advisor

    8 Essential Tips For Retirement Saving

    Whether you're a saver or a financial advisor who wants to give clients a leg up, these 8 tips are essential for financial planning.
Hot Definitions
  1. Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange ...
  2. Revolving Credit

    A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is ...
  3. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
  4. Contango

    A situation where the futures price of a commodity is above the expected future spot price. Contango refers to a situation ...
  5. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  6. Acid-Test Ratio

    A stringent indicator that indicates whether a firm has sufficient short-term assets to cover its immediate liabilities. ...
Trading Center