A DC pension plan is a retirement plan offered by many companies. Such plans are...
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A DC pension plan is a retirement plan offered by many companies. Such plans are taxdeferred savings vehicles, meaning that any deposits you make into the plan are deducted from your current pretax income, so no current taxes are paid on the money. For example, assume your salary will be $ per year. If you contribute $ to the DC pension plan, you will pay taxes on only $ in income. There are also no taxes paid on any capital gains or income while you are invested in the plan, but you do pay taxes when you withdraw money at retirement. The company also has a match. This means that the company will match your contribution up to of your salary, but you must contribute to get the match.
A DC pension plan is a retirement plan offered by many companies. Such plans are taxdeferred savings vehicles, meaning that any deposits you make into the plan are deducted
from your current pretax income, so no current taxes are paid on the money. For
example, assume your salary will be $ per year. If you contribute $ to the
DC pension plan, you will pay taxes on only $ in income. There are also no taxes
paid on any capital gains or income while you are invested in the plan, but you do pay taxes
when you withdraw money at retirement. The company also has a match. This means
that the company will match your contribution up to of your salary, but you must
contribute to get the match.
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