A 401k plan is different from a pension in that
A)pensions provide a guaranteed income.
B)401k plans do not require the employee to contribute to the plan.
C)401k plans are outdated and no longer exist.
D)pension plans come only from private employers.

Question

A 401k plan is different from a pension in that​
A)​pensions provide a guaranteed income.
B)​401k plans do not require the employee to contribute to the plan.
C)​401k plans are outdated and no longer exist.
D)​pension plans come only from private employers.

Quizplus · Accepted Answer

Pensions provide a guaranteed income in retirement, typically based on years of service and salary, whereas 401k plans are defined-contribution plans where the income in retirement depends on the contributions and investment performance.

A 401k Plan Is Different from a Pension in That​

A 401k Plan Is Different from a Pension in That