Defined Contribution
Updated:
11/12/24
A defined contribution plan is a type of retirement savings plan in which employees contribute a fixed amount or a percentage of their paychecks to an individual account set up for them. Employers may also choose to contribute to these accounts, sometimes matching employee contributions up to a certain percentage. The contributions are typically made on a pre-tax basis, which can reduce the employee's taxable income. The retirement benefits an employee receives from a defined contribution plan depend on the amount contributed and the performance of the investments chosen.
A defined contribution plan is a type of retirement savings plan in which employees contribute a fixed amount or a percentage of their paychecks to an individual account set up for them. Employers may also choose to contribute to these accounts, sometimes matching employee contributions up to a certain percentage. The contributions are typically made on a pre-tax basis, which can reduce the employee's taxable income. The retirement benefits an employee receives from a defined contribution plan depend on the amount contributed and the performance of the investments chosen.
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Revolutionize Your Hiring Process with Skills-Based Precision
Experience how Bryq can transform your organization into a skills-first powerhouse. Request a demo today and see how our science-driven platform accelerates hiring, elevates quality, and fosters inclusivity—all in record time.
Revolutionize Your Hiring Process with Skills-Based Precision
Experience how Bryq can transform your organization into a skills-first powerhouse. Request a demo today and see how our science-driven platform accelerates hiring, elevates quality, and fosters inclusivity—all in record time.
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Are you a talent looking to elevate your career?
Explore your strengths and weaknesses with our free Self-Discovery Assessment.
Are you a talent looking to elevate your career?
Explore your strengths and weaknesses with our free Self-Discovery Assessment.