The best-known defined-contribution plan is the

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The 401(k) plan is the most widely recognized and utilized defined-contribution plan in the United States. It is offered by many employers as a component of their employee benefits package. It enables employees to save for retirement by making contributions to the plan, usually through payroll deductions, which are then invested in various investment vehicles. The employer may also match a portion of the employee's contributions as an added incentive to participate in the plan. The plan offers tax advantages, such as contributions being made with pre-tax dollars and investments growing tax-deferred until withdrawn during retirement.

The Best-Known Defined-Contribution Plan Is the