Actions may not actually speak louder than words but they do prove things better. Like the saying, A picture is worth a thousand words. an action shows that someone is genuiâ¦ne. Someone may say that they will help the hungry people of the world, but when they actually get out there and feed them, we believe it.
Defined Contribution Plan is a retirement plan in which the employee and/or the employer contribute to the employeeâs individual account under the plan. The amount in the account at distribution includes the contributions and investment gains or losses, minus any investment and administrative fees.
Defined contribution plans travel under many confusing aliases, including money purchase plans, profit sharing plans, and employee stock ownership plans (see the discussion in our Foolish Retirement Plan Primer for details). Adding to the confusion, one or more of these types of plans are often combined.or most Fools, though, a defined contribution plan is most likely to be simply known as a 401(k) . For the purposes of what follows, and to keep things simple, let's assume that you're retiring (Woo-hoo!), have a 401(k) plan that you've been contributing to (Woo-hoo!