A(n)________ is a pension plan in which you and your employer or your employer alone contribute funds directly to a retirement account set aside specifically for you.

Question

Quizplus · Accepted Answer

A defined-contribution plan is a type of pension plan in which contributions are made by either the employer or the employee (or both) directly into a retirement account set aside for the individual. Examples of defined-contribution plans include 401(k)s, 403(b)s, and IRAs. The amount of money available for retirement will depend on the contributions made and the investment performance of the account. This is different from a defined-benefit plan where the ultimate benefit is predetermined regardless of how much is contributed, and a cash balance plan which is a hybrid of defined-benefit and defined-contribution plans. Therefore, option C is the correct answer as it matches the description given.

A(n)________ Is a Pension Plan in Which You and Your