A defined-contribution plan is a retirement plan controlled by an employee, who decides how much to contribute and how to invest the funds.
Defined-contribution plans are becoming the standard, replacing pensions that guaranteed retirees payments throughout retirement from their former employers.
Types of defined-contribution plans include: 401(k), 403(b), 457, Simplified Employee Pension (SEP), and Savings Incentive Match Plan for Employees (SIMPLE).
Related Fool Articles
- Is Your Retirement Plan Foolish?
- The Fool's Retirement Center
- Work for Yourself, Retire for Yourself
- Earn More From Your Retirement Savings
- The Trend That Could Save Your Retirement
- Defined-benefit plan
- Simplified Employee Pension (SEP)
- Savings Incentive Match Plan for Employees IRA (SIMPLE)
Recent Mentions on Fool.com
- How to Ignore Roth IRA Contribution Limits and Put Away Over $30,000 Per Year
- This Growing Concern Accounts For Nearly 500,000 Cancer Cases Each Year
- The 3 Stocks We Wish Would IPO in 2015
- Retirement Planning: 3 Dumb Mistakes You Can Easily Avoid
- The Shockingly Simple Solution to Our Retirement Crisis
- Should You Consider ETFs for Your Portfolio?