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LSDefine

Simple English definitions for legal terms

defined contribution plan

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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 The contributions are not taxed until the money is withdrawn at retirement, and the employee can choose how to invest the money.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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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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