Question

Gail’s employer contributes $2,000 (5% of her $40,000 salary) to a qualified retirement plan for Gail. This pension plan is what kind of plan?

Answer 1

The correct answer is "defined contribution plan"

Step-by-step explanation:

A defined contribution plan is a type of retirement plan in which the employer makes contributions regularly to a specific account, the benefits depend on the amount of the contribution of his or her earnings (usually pretax).