Section 16.4 Defined Contribution Plan
| Library | Family Law Deskbook and 2014 Supp |
a. (§16.4) Defined Contribution Plan
A “defined contribution” plan is a qualified deferred compensation arrangement whereby the employer “defines” the interest to be contributed to the plan. A defined contribution plan generally provides for an individual account for each participant, and benefits are paid based on some formula as a function of the amount of salary or other compensation earned. The most common types of defined contribution plans are:
· Profit-sharing plans
· Some cash balance plans...
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