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money-purchase pension plan

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Financial Dictionary

Money-Purchase Pension Plan

A defined-contribution plan to which employer contributions are fixed.

Investopedia Commentary

Employers may contribute up to 25% of employees' compensation to a money purchase pension plan.

Related Links

Introductory Tour through Retirement Plans
Making Salary Deferral Contributions - Part 1
Making Salary Deferral Contributions - Part 2

See also: Defined Benefit, Defined Contribution, Pension Plan

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