Examlex
Which of the following statements regarding contract terms is correct?
Defined-contribution Plans
Retirement plan wherein employees contribute a fixed amount or a percentage of their paychecks into an account that is intended to fund their retirements.
Maximum Contribution Limits
The highest amount that can be contributed to a retirement plan, savings account, or other tax-advantaged account in a given period without incurring penalties.
Qualified Pension Plan
A retirement plan that meets requirements set forth by the IRS, providing tax advantages such as tax-deferred growth on earnings and deductible contributions.
Employer-sponsored Retirement Plan
A retirement savings plan offered by employers to their employees, often with matching contributions.
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