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LSDefine

Simple English definitions for legal terms

defined contribution plan

Read a random definition: ex visceribus

A quick definition of defined contribution plan:

A defined contribution plan is a type of retirement plan where an employee and sometimes their employer put money into an account that is invested. When the employee retires, they receive payments from the account based on how well the investments did. This type of plan has benefits like not paying taxes on gains until retirement, but the employee usually can't take money out until they're 59 ½ years old without paying a fine. This is different from a pension plan where the employer guarantees a specific amount of money to the employee regularly. 401(k)s are a common type of defined contribution plan.

A more thorough explanation:

A defined contribution plan is a type of retirement plan where both the employee and sometimes the employer contribute to a retirement account. The money is then invested, and the employee will receive payments upon retirement that depend on how well the investment performs. This is different from a pension plan where the employer guarantees a specific amount of money to the employee periodically.

One popular example of a defined contribution plan is a 401(k). In a 401(k), the employee contributes a portion of their salary to the retirement account, and the employer may also contribute a matching amount. The money is then invested in stocks, bonds, or other investments. When the employee retires, they receive payments based on how well the investments performed.

Defined contribution plans have many benefits, including tax advantages and flexibility. The contributions are not taxed until the money is withdrawn at retirement, and the employee can choose how to invest the money. However, there are also some restrictions, such as penalties for withdrawing money before a certain age.

Overall, defined contribution plans are a way for employees to save for retirement and potentially earn more money through investments.

defined benefit plan | definite trust beneficiaries

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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