A ________ is similar to some types of defined-contribution plans, particularly money purchase plans and profit sharing plans, according to which the employer contributes at a fixed rate but does not guarantee benefit.

Question

Quizplus · Accepted Answer

The description matches that of a cash balance plan, where the employer contributes a fixed rate but does not guarantee specific benefits, similar to money purchase and profit sharing plans. The other options, such as managerial balance plans or defined-balance plans, are not typically used in retirement savings and do not fit the given description.

A ________ Is Similar to Some Types of Defined-Contribution Plans