Asked by Jessika Patterson on Jul 05, 2024
Verified
What is an example of a defined-contribution pension plan?
A) consumer-driven pension plan
B) money purchase plan
C) cost-sharing plan
D) flexible spending account plan
E) unfunded PBGC plan
Money Purchase Plan
A type of defined-contribution retirement plan in which the employer's annual contributions are fixed and determined by formula.
Flexible Spending Account Plan
A benefit plan that allows employees to set aside pre-tax dollars for eligible expenses, such as medical or dependent care expenses.
- Acknowledge the critical role of retirement plans in influencing lifelong work connections.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
B
Explanation :
A money purchase plan is an example of a defined-contribution pension plan, where employers contribute a fixed percentage of the employee’s salary each year. The amount that accumulates in the employee’s account depends on the performance of the investment choices that the employee made.
Learning Objectives
- Acknowledge the critical role of retirement plans in influencing lifelong work connections.
Related questions
Park Production Offered Employees a Defined-Benefit Retirement Plan, in Which ...
Evan Is the Human Resource Manager of a One-Year-Old Technology ...
Which Federal Law Increased the Responsibility of Pension Plan Trustees ...
Which Organizations Benefit When Switching from a Defined-Benefit Plan to ...
Under a 401(k) Plan, the ________ Is Responsible for Choosing ...