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.
Learning Objectives
- Recognize and describe the characteristics of defined contribution and benefit plans.
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