Your organization currently has a defined contribution pension plan with employees contributing up to 3% with a company match. Effective with the first pay of the new year, new employees will no...

A Defined Contribution plan, like a 401(k) and 403(b), would be a tax deferred retirement system wherein employees contribute a set amount or a proportion of their earnings to an account that will finance their retirement. As a bonus, the sponsoring company may match a portion of employee contributions. These programs restrict when and how employees can take money from the account without suffering fines.
401(k) and 403(b) defined contribution schemes are commonly used by businesses and organizations to motivate their staffs to save for future.
DC plans differ from defined-benefit (DB) pensions, which are guaranteed by the employer. A DC plan has no guarantees, and participation is entirely optional.
It's impossible to anticipate how often a defined contribution program would provide a worker once they retire since contribution amounts and investment gains vary over time.
Payments to a defined contribution plan can be made tax-free. In traditional defined-contribution plans, contributions are tax-deferred, but withdrawals are taxed. A Roth 401(k)...