In a defined-contribution plan future benefits ________.
A)are set in advance
B)are registered with the federal regulatory authority
C)are determined by the contributions into the plan and their earnings
D)are government administered

Question

Quizplus · Accepted Answer

In a defined-contribution plan, future benefits are based on the contributions made into the plan and their earnings. The benefits are not predetermined or set in advance, as they are in a defined-benefit plan. The plan may be registered with the federal regulatory authority, but this is not related to the determination of future benefits. The plan is not government administered, as it is typically sponsored by an employer or individual.

In a Defined-Contribution Plan Future Benefits ________