A retirement plan in which the employer and employee contribute to the plan is a:
A) Tax-deferred plan
B) Non-contributory plan
C) Contributory plan
D) Social Security plan

Question

Quizplus · Accepted Answer

A contributory retirement plan is one in which both the employer and employee contribute to the plan. This is different from a non-contributory plan, in which only the employer makes contributions, and a Social Security plan, which is a government-run retirement plan. A tax-deferred plan refers to the fact that taxes on the contributions and growth of the plan are deferred until withdrawal, and can apply to both contributory and non-contributory plans.

A Retirement Plan in Which the Employer and Employee Contribute