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.
Participating in your employer's 401(k) plan allows you set aside money for retirement and get some nice tax breaks. Contributions might reduce taxable income. That depends on the type of contributions made and whether you or your employer makes the contribution.ypically, employer contributions are calculated as a percentage of your salary or your contributions. Like the money you put into your 401(k), employer contributions are tax free.