Paul Earns $55,000 During the Current Year

question 47

Multiple Choice

Paul earns $55,000 during the current year.His employer contributes $3,000 during the year to a qualified retirement plan on behalf of Paul.The amount of the contribution for the year is based on Paul's desire to have a monthly retirement benefit of $3,500.What type of retirement plan is this?

• A)Defined benefit plan
• B)Defined contribution plan
• C)Employee earnings plan
• D)Profit sharing plan
• E)None of the above