Defined-contribution plan

A defined-contribution (DC) plan is retirement plan that’s typically tax-deferred, like a 401(k) or a 403(b), in which employees contribute a fixed amount or a percentage of their paychecks to an account that is intended to fund their retirements. The sponsor company will, at times match a portion of employee contributions as an added benefit. These plans place restrictions that control when and how each employee can withdraw from these accounts without penalties—Read more at Investopedia. Hayes, Adam. “Defined-Contribution Plan.” 25 June 2019