Which of the following statements regarding defined contribution plans is false?
A)Employers bear investment risk relating to the plan.
B)Employees immediately vest in their contributions to the plan.
C)Employers typically match employee contributions to the plan to some extent.
D)An employer's vesting schedule is used for employers' contributions in determining the amount of the plan benefits the employee is entitled to receive on retirement.

Question

Quizplus · Accepted Answer

In defined contribution plans, employees bear the investment risk, not employers. Employers may contribute to the plan, but the investment risk is on the employees based on how their contributions are invested.

Which of the Following Statements Regarding Defined Contribution Plans Is