A retirement savings plan where only the contribution levels are specified, not the end benefit. In the U.S. , the most common type of DC plan is the 401(k) plan, but there are DC plans where only the employer makes contributions (i.e. a money purchase pension plan).

In a DC plan, the employee bears the market risk. Also, most DC plans are portable, meaning you can transfer your money to another retirement account when you quit your job.

Log in or register to write something here or to contact authors.