Asked by Mollie Weber on Jul 01, 2024

One of the more popular defined contribution plans is the 401k plan.

Defined Contribution Plans

A type of retirement plan in which the employer, employee, or both make contributions to an individual's retirement account, with future benefits depending on the investment's performance.

401k Plan

A retirement savings plan sponsored by an employer that allows employees to save and invest a piece of their paycheck before taxes are taken out.

  • Recognize and describe the characteristics of defined contribution and benefit plans.