CTP · Question #314
(Topic 4) Company XYZ offers a retirement plan wherein the value of the plan's assets and liabilities is measured separately. The plan's funding and valuation can have a significant impact on the…
The correct answer is B. Defined benefit plan and defined contribution plan; ERISA. See the full explanation below for the reasoning.
Question
- (Topic 4)
Company XYZ offers a retirement plan wherein the value of the plan’s assets and liabilities is measured separately. The plan’s funding and valuation can have a significant impact on the financial condition of the company. Company ABC offers a retirement plan wherein the amount owed to the participants at retirement is based solely on the account balance at the time of withdrawal with participants often bearing the responsibility for managing the investments in their account. Which of the following BEST describes the above two retirement plans and which act governs them?
Options
- A403(b) and defined contribution plan; ERISA
- BDefined benefit plan and defined contribution plan; ERISA
- CQualified and non-qualified plan; Pension Protection Act
- DDefined benefit plan and defined contribution plan; Pension Protection Act
How the community answered
(22 responses)- A5% (1)
- B82% (18)
- C9% (2)
- D5% (1)
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