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Contribution plan

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Con`tri`bu´tion plan
1.(Life Insurance) A plan of distributing surplus by giving to each policy the excess of premiums and interest earned thereon over the expenses of management, cost of insurance, and the policy value at the date of computation. This excess is called the contribution of the policy.

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A: If you add one caveat--that you do want people to have enough income to retire--then you've got to do a defined contribution plan where the employer contributes in the neighborhood of 15 percent of pay in addition to whatever amount the employee contributes.
The new defined contribution plan, effective from Jan.
402(g) (1) and (3)] Defined contribution plan annual addition [Sec.
 
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