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Employee contribution is the portion of your gross pay that gets deducted from your paycheck and directed toward taxes, mandatory social welfare programs, and voluntary benefits like retirement and health plans. Employee contributions are payments made by employees towards their retirement plans, such as 401 (k)s, iras, or pension plans These contributions are deducted from the employee's salary and are invested to help build their retirement savings. While you can save quite a lot in a 401 (k) every year, you can't contribute an unlimited amount
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