What Is A Defined Contribution Retirement Plan? 
A defined contribution plan is employer sponsored retirement plan under ERISA -LRB- The Employee Retirement Income Security Act of 1974 . -RRB- Employees can contribute up to the maximum limit set by ERISA each calendar year with rep taxed dollars and their accounts accumulated tax deferred . A 401 -LRB- k -RRB- is an example of a defined contribution plan . 