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A DC pension plan is a retirement plan offered by many companies. Such plans are...

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Accounting

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 pre-tax income, so no current taxes are paid on the money. For
example, assume your salary will be $100,000 per year. If you contribute $6,000 to the
DC pension plan, you will pay taxes on only $94,000 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 5% match. This means
that the company will match your contribution up to 5% of your salary, but you must
contribute to get the match.

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