Which of the following describes a defined contribution plan?
A) Generally set up to defer income for executives and highly compensated employees but not other employees.
B) Provides guaranteed income on retirement to plan participants.
C) Employers and employees generally may contribute to the plan.
D) Retirement account set up to provide an individual a fixed amount of income on retirement.

Question

Quizplus · Accepted Answer

A defined contribution plan is a retirement plan in which employers and employees can make contributions to the plan, usually through payroll deductions. The ultimate benefit received by the employee is based on the contributions made and the investment performance of those contributions.

Which of the Following Describes a Defined Contribution Plan