Defined-contribution employer-sponsored retirement plans provide you with a specific amount of income when you retire, based on factors such as your salary and years of employment.

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Defined-contribution plans, such as 401(k)s, do not guarantee a specific amount of income upon retirement. Instead, the retirement income depends on the contributions made by the employee and/or employer, as well as the investment performance of those contributions.

Defined-Contribution Employer-Sponsored Retirement Plans Provide You with a Specific Amount