Accounts & CustomersPregunta 67 de 125

A 401(k) plan is a type of:

a.Employer-sponsored defined contribution retirement plan
b.Federal pension guaranteed by the government
c.Municipal savings bond program
d.Individual account with no employer involvement

Explicación

A 401(k) is an employer-sponsored defined contribution plan in which employees defer part of their salary, often with employer matching, into investment accounts. The retirement benefit depends on contributions and investment performance, unlike a defined benefit plan that promises a set payout. ERISA governs these workplace plans.

Referencia Legal: Employee Retirement Income Security Act

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