Which One of the Following Is Not a Typical Characteristic

question 56

Multiple Choice

Which one of the following is not a typical characteristic of a defined contribution plan?

• A)Employer may match contributions
• B)Ability to transfer account balance to an IRA
• C)Guaranteed formula-based benefit
• D)Employee-managed investments
• E)Benefit depends on employee contributions

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Definitions:

Individual Income Taxes

Taxes levied on the income of individuals or households, varying with income levels.

Social Insurance Taxes

Taxes collected by a government to fund social security programs, providing benefits for retirees, the disabled, and the unemployed.

Corporate Income Taxes

Taxes imposed on the net income (profits) of corporations, determined by the law of the country in which the corporation is registered.