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Defined Benefit Plans (Employer Contributions to a Defined Benefit Plan are determined actuarially in an amount to fund the retirement benefit and may exceed $40,000 per year per Employee.)
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Employee Stock Ownership Plans (ESOPs) (Defined Contribution Plans (Profit-Sharing, Money Purchase, 401(k), and ESOPs) limit an employer's contribution to the lesser of $40,000 per year or 100% of the Participant's Compensation.)
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