A ______ identifies only the amount of funds that will go into a retirement account,not what the employee will receive upon retirement.
A) defined benefit plan
B) utilization analysis
C) vesting
D) defined contribution plan

Question

Quizplus · Accepted Answer

A defined contribution plan only identifies the amount of funds that will go into a retirement account, not what the employee will receive upon retirement. The actual benefit received upon retirement will depend on the performance of the investments in the account. Defined benefit plans, on the other hand, specify the benefit that the employee will receive upon retirement, often based on factors such as years of service and salary history. Utilization analysis and vesting are not directly related to retirement benefits.

A ______ Identifies Only the Amount of Funds That Will