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.

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