A 401(k)plan is best described as a ________.
A) defined contribution pension plan
B) defined benefit pension plan
C) health savings account
D) golden parachute

Question

Quizplus · Accepted Answer

The most popular defined contribution plans are based on section 401(k) of the Internal Revenue Code, and called 401(k) plans. The employee authorizes the employer to deduct a sum from his or her paycheck before taxes, and to invest it in the savings in his or her 401(k).

A 401(k)plan Is Best Described as a ________