Employee Costs and Risks in 401(k) Plans
sored retirement savings plans. A 401(k) plan is a type of defined contri-bution retirement plan whereby em-ployees contribute their own money to the plan and usually determine how the funds are invested. 4 Employee contri-butions may be matched by the em-ployer. Under defined contribution plans, the employee bears the invest-ment risk. ................
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