Which type of plan balances the risk an employee takes while saving for retirement?

Question

Quizplus · Accepted Answer

B)A cash balance plan is a plan with elements of both defined benefit and defined contribution plans.During the recent recession,many 401(k)accounts took a beating.As a result,many employers felt having employees assume 100 percent of the risks was too much.A middle ground was found using a cash balance plan in connection with a defined contribution plan.When used as a stand-alone plan,a cash balance plan provides all of the benefits that would otherwise be available under a standard defined benefit plan.

Which Type of Plan Balances the Risk an Employee Takes