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ContributionMoney placed in an individual retirement account (IRA), an employer-sponsored retirement plan, or other retirement plan for a particular tax year. Contributions may be deductible or nondeductible, depending on the type of account.ContributionAn amount of money paid into an account. This can be a 'one off' payment or on a regular basis.Contribution Similar MatchesAdditional voluntary contributionsAdditional voluntary contributionsAdditional payments to a tax deferred savings account or an occupational pension scheme by an employee to boost a pension at retirement. Free standing additional voluntary contributionsFree standing additional voluntary contributionsAn employee's pension scheme which is additional to but independent from his occupational pension scheme. The maximum amount which may currently be contributed to an employee's pension fund is 15% of salary (which includes benefits in kind) including his company scheme. For example if an employee is contributing 10% of his salary to a company scheme, a further 5% can be paid by that employee in each tax year into FSAVCs or AVCs. However, the employer and employee contributions when combined must not produce benefits in excess of Inland Revenue maximums. Defined contribution pension planDefined contribution pension planA pension plan in which benefits are dependent on contributions to and the growth of the pension fund. Federal Insurance Contributions ActFederal Insurance Contributions ActIn the US, the federal law which directs employers to withhold a proportion of employees' salaries for payment to the government in order to provide future pension and other social security benefits. Defined contribution planDefined contribution planA pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan Further Suggestionsmoney purchase scheme (defined contributions scheme)Contribution margin General Average Contribution National Insurance (NI) Contributions Equal percentage contribution rule (EPCoR) Equity contribution agreement Deductible contribution voluntary deductible employee contribution plan Nondeductible contribution Excess contribution Contributions Agency simplified defined contribution scheme |
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