QuestionAugust 2, 2025

A 401k is an example of what type of retirement plan? Defined benefit plan Traditional IRA Defined contribution plan Pension

A 401k is an example of what type of retirement plan? Defined benefit plan Traditional IRA Defined contribution plan Pension
A 401k is an example of what type of retirement
plan?
Defined benefit plan
Traditional IRA
Defined contribution plan
Pension

Solution
3.2(255 votes)

Answer

Defined contribution plan Explanation 1. Identify the type of plan A 401k is a retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out. It is characterized by contributions defined by the employee and sometimes matched by the employer.

Explanation

1. Identify the type of plan<br /> A 401k is a retirement savings plan sponsored by an employer that allows employees to save and invest a portion of their paycheck before taxes are taken out. It is characterized by contributions defined by the employee and sometimes matched by the employer.
Click to rate:

Similar Questions