### Question
How is the "individual account plan” or “defined contribution plan" defined?


### Answer
The term **individual account plan” or “defined contribution plan** is defined in *29 U.S.C. § 1002* as follows -

> a pension plan which provides for an individual account for each participant and for benefits based solely upon the amount contributed to the participant's account, and any income, expenses, gains and losses, and any forfeitures of accounts of other participants which may be allocated to such participant's account

#### Citation:
  - *29 U.S.C. § 1002*
  - Heading: **CHAPTER 18-EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM > SUBCHAPTER I-PROTECTION OF EMPLOYEE BENEFIT RIGHTS > Subtitle A-General Provisions**

