What Is An Example Of A Defined Contribution Retirement Plan?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   An example of a defined contribution plan is a 401(k), employer sponsored retirement plan under ERISA, Employee Retirement Income Security Act of 1974. The pretax contributions accumulate tax deferred and some employers match a portion of the employee's contribution, further enhancing the overall benefit. In addition, plan participants over age 50 can contribute additional monies beyond the  annual set contribution limitations.

   Answered on September 4, 2013

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