Why Do Employers Currently Choose the 401(k),401(a),or 403(b)plan Rather Than

question 20

Multiple Choice

Why do employers currently choose the 401(k) ,401(a) ,or 403(b) plan rather than a traditional defined benefit pension plan?

• A) Employers receive increased incentives to offer these plans and they carry substantially reduced risk.
• B) There are guaranteed benefits for employees and the employer bears no risk of investment under these plans.
• C) These plans ensure that if the company fails,the accrued pension benefits will nevertheless be paid.
• D) Under these plans,employers have 40 years to fully fund an underfunded plan.

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Definitions:

Color-Sensitive

The ability to perceive and differentiate colors accurately.

Protestant Christianity

A branch of Christianity that originated with the Reformation, a movement against perceived errors in the Roman Catholic Church, emphasizing the authority of the Bible and salvation through faith alone.

Catholicism

A branch of Christianity based on the teachings of the Roman Catholic Church, led by the Pope in Vatican City.