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.
Employer contribution = The total amount the employer contributes to the whole profit-sharing plan; How much does an individual get in the profit-sharing plan? Employee comp fraction multiplied by the employer contribution determines the individual employeeâs share of the employer contribution.