When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________.
A)qualified
B)non-qualified
C)defined contribution
D)non-contributory

Question

Quizplus · Accepted Answer

D)Pension plans are classified in three ways: contributory versus non-contributory plans, qualified versus non-qualified plans, and defined contribution versus defined benefit plans. The employee contributes to the contributory pension plan, while the employer makes all contributions to non-contributory plans.

When an Employer Makes All of the Contributions to the Pension