A(n)________ plan is a retirement plan for which the employer assumes all the risk of meeting the plan's obligation and which provides the employee with a safe,secure,predictable retirement income.
A) 401(k)
B) portable benefit
C) IRA
D) defined benefit

Question

Quizplus · Accepted Answer

A defined benefit plan is a retirement plan where the employer takes on the risk of providing the employee with a specific retirement benefit based on the employee's salary and length of service. This benefit is not affected by investment performance or other market fluctuations, making it a safe and predictable source of retirement income. While 401(k) plans and IRAs also provide retirement savings, they do not offer the same level of guarantee as a defined benefit plan. Portable benefits are a different type of plan that would not fit the definition of employer-assumed risk and guaranteed retirement income.

A(n)________ Plan Is a Retirement Plan for Which the Employer