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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Defined contribution plan  

Definition 1.

A pension plan whoae sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan
 

Definition 2.

A retirement plan wherein a certain amount or percentage of money is set aside each year for the benefit of the employee. There are restrictions as to when and how you can withdraw these funds without penalties.
 
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