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Financial Dictionary

Financial Dictionary - definitons of investment, economic and financial terms

Atlantic Financial


Atlantic Financial


Investment Word

Defined Contribution Plan

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In a defined contribution plan, the employee and/or the employer contribute to the employee’s individual account under the plan. The employee often decides how their accounts are invested. The amount in the account at distribution includes the contributions and investment gains or losses, minus any investment and administrative fees. The contributions and earnings are not taxed until distribution. The value of the account will change based on the value and performance of the investments.

Defined Contribution Plan - definition

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