A(n) ____ plan is a benefit plan through which the employer makes tax-deductible contributions of company stock into a trust; these contributions are then allocated into accounts for individual employees.
Employee stock-ownership

Question

Quizplus · Accepted Answer

The description given in the question matches the characteristics of an employee stock-ownership plan (ESOP), which is a type of benefit plan in which the employer contributes company stock into a trust, and employees receive allocations based on their compensation. ESOPs are tax-deductible for the employer and can provide employees with a stake in the company's success. Profit-sharing plans involve the employer sharing a portion of profits with employees, thrift and savings plans provide a retirement savings vehicle, and deferred-compensation plans allow employees to defer a portion of their compensation to a later date. However, none of these plans involve the employer contributing company stock into a trust for individual employees.

A(n) ____ Plan Is a Benefit Plan Through Which the Employer