A defined contribution (DC) plan is a type of retirement savings plan employers offer to employees in a workplace setting. Defined contribution means the employee and often employer in the form of a “match,” both contribute to the plan in pre-tax or after-tax wages, depending on the type of plan.
The monetary contributions to the defined contribution plans are routine and consistent. Examples include the 401k, Roth 401k, 403b, 457, 529, and Thrift Savings Plan (TSP).