Which one of the following is true of defined contribution plans?

Question

Quizplus · Accepted Answer

Defined contribution plans, such as 401(k) plans, are more prevalent in smaller than larger companies. This is because larger companies are more likely to offer pension plans, which are defined benefit plans. Defined contribution plans shift the investment risk to the employee, not the employer, and while they do require administrative oversight, they are not necessarily more challenging than defined benefit plans. Finally, they are not declining in popularity; in fact, they have become the most common type of retirement plan offered by employers in the United States.

Which One of the Following Is True of Defined Contribution