A Defined Contribution Plan is a type of retirement savings plan where both employees and employers can contribute a specific amount of money regularly. The contributions are typically invested in various financial instruments, and the final retirement benefit depends on the total contributions made and the investment performance over time. Common examples include 401(k) and 403(b) plans. Unlike Defined Benefit Plans, which guarantee a specific payout at retirement, the amount received from a Defined Contribution Plan can vary. Participants usually have control over their investment choices, allowing them to tailor their portfolios according to their risk tolerance and retirement goals.