A ______ plan is a defined contribution pension plan funded with contributions by the participants or a combination of participant and employer contributions.

Question

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A 401(k) plan is a type of defined contribution pension plan funded with contributions by the participants or a combination of participant and employer contributions. In a 401(k) plan, the employee contributes a portion of their salary on a pre-tax basis, and in some cases, the employer may also match a portion of the contribution. The funds in the plan are invested and grow tax-deferred until the employee retires and begins taking distributions.

A ______ Plan Is a Defined Contribution Pension Plan Funded