A company instituted an IRS approved plan to fund a percentage of each employee's salary to a plan that would pay benefits to the employee after termination of services.This plan is a

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A defined contribution pension plan is a type of retirement plan where the employer makes contributions based on a fixed percentage of the employee's salary. The contributions are invested and the resulting benefits upon retirement or termination of services are based on the investment performance of the plan. This plan is also commonly referred to as a 401(k) plan.

A Company Instituted an IRS Approved Plan to Fund a Percentage