saying something can only go to a certain extent while taking action from the words that your saying can be louder and more powerful than anything your saying.
Defined contribution plans are funded primarily by the employee, called the participant, with the employer matching contributions to a certain amount. The most common type of defined contribution plan, which many people are familiar with, is a 401(k) plan. A participant may elect to defer a portion of his gross salary via a pretax payroll deduction to the plan, and the company matches according to its summary plan description, or SPD.
Matching Contributions A matching contribution is an employer contribution that is allocated on the basis of the employeeâs elective contribution. A matching contribution may be either mandatory or discretionary. Matching contributions may be made on an ongoing basis, as deferrals are paid to a trust, or after the end of the plan year. Matching contributions may be subject to discrimination testing under the average contribution percentage (ACP) test. A Very Quick Introduction to 401(k) Plans