Under a(n) ________, the employer makes a specified dollar payment to an account in a managed fund, and the retirement benefit depends on the investment gains or losses by the fund.

Question

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The given scenario describes a defined contribution plan, where the employer contributes a specific amount to a managed fund, and the retirement benefit is dependent on the investment performance. Option A is incorrect as it refers to a different type of retirement plan where employee contributions are made with pre-tax dollars. Option B is a traditional pension plan where the retirement benefit is based on a formula considering factors like salary, years of service, age, etc. Option C is an employee benefit plan that offers company shares to employees as part of their compensation.

Under A(n) ________, the Employer Makes a Specified Dollar Payment