A DC pension plan is a retirement plan offered by many companies. Such plans are taxdeferred savings vehicles, meaning that any deposits you make into the plan are deducted

from your current pre$-$tax income, so no current taxes are paid on the money. For

example, assume your salary will be $$100,000$ per year. If you contribute $$6,000$ to the

DC pension plan, you will pay taxes on only $$94,000$ in income. There are also no taxes

paid on any capital gains or income while you are invested in the plan, but you do pay taxes

when you withdraw money at retirement. The company also has a $5\%$ match. This means

that the company will match your contribution up to $5\%$ of your salary, but you must

contribute to get the match.