A ________ plan relieves companies of long-term pension obligations and makes the worker responsible for the plan's performance.

Question

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A 401(k) plan is a type of defined contribution plan where employees contribute a portion of their salary to their own individual retirement account. The employer may also make matching contributions. The plan's performance is dependent on the investment choices made by the employee, who bears the risk and responsibility for the account's performance. This type of plan relieves the employer of long-term pension obligations.

A ________ Plan Relieves Companies of Long-Term Pension Obligations and Makes