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LeoGlossary: Defined Contribution Benefit Plan

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Published: 18 Jan 2023 › Updated: 18 Jan 2023LeoGlossary: Defined Contribution Benefit Plan

LeoGlossary: Defined Contribution Benefit Plan

How to get a Hive Account


A defined-contribution plan entails a specific percentage of an employee’s salary being put aside by an employer, and although the employee contribution is fixed the resulting sum is not. The withdrawal of these funds comes with certain restrictions, which if impeded will result in a financial penalty.

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