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.