An employer-sponsored retirement plan in which the employer or the employee puts money in a retirement account for the employee,and the amount of the retirement benefit depends on how well the investment yields,is called a

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In a defined-contribution plan, the amount of money that an employee contributes to their retirement fund is known, but the future retirement benefits are uncertain and depend on how well the investments perform. This is different from a defined-benefit plan, where the employer guarantees a specific retirement benefit to the employee. A tax-sheltered annuity is a type of retirement plan that lets employees save for retirement on a tax-deferred basis, often offered by non-profit organizations. A profit-sharing plan is a type of retirement plan where the employer contributes a portion of the company's profits to the plan and the amount of retirement benefits received by employees depends on how much the employer contributes.

An Employer-Sponsored Retirement Plan in Which the Employer or the Employee