Definition

A defined contribution plan is an employer-sponsored retirement account where you and/or your employer contribute a set amount regularly. Your final retirement payout is based entirely on the total contributions and the performance of your chosen investments (like mutual funds or stocks).

What is a Defined Contributions Plan?

“Contribution” means an amount expressed as a percentage of Salary to be deducted or withheld from an Employee's Salary by an Employer, or financed by an Employer and paid to the Fund.