The defined benefit plan is very similar to which of the following: A. none of these...
The defined benefit plan is very similar to which of the following:
A. none of these choices is correct
B. employer matching plan
C. defined contribution plan
D. cash balance plan
E. all of these choices are correct
Homework Answers
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Defined benefit pension plans:
It is a Pension plan which promises their beneficiaries a certain amount during their retirement.
Cash balance plan is a type of defined benefit plan.
Defined contribution pension plans:
It is a plan in which participants contribute a certain % of their payroll to their own retirement plan accounts, usually in form of a deduction in their payroll.
In some cases, the sponsor also contributes an agreed amount to their participant's accounts.
It is a type of employer matching plan.
Answer: D. Cash balance plan.
A, B, C, E are incorrect due to above explaination.
Add Answer to:
The defined benefit plan is very similar to which of the
following:
A. none of these...
Which of the following statements about defined contribution plans is incorrect? a. Defined benefit plans are...
Which of the following statements about defined contribution plans is incorrect? a. Defined benefit plans are used more often by large corporations than by small companies b. In a defined contribution plan, the employer must make larger-than-average contributions to the pension plan when investment returns have been below expectations. c. In general, employees can choose the investment vehicle under a defined contribution plan. Thus, highly risk-averse employees can choose low-risk investments, while more risk-tolerant employees can choose high-risk Investments d....
What is the definition of a defined benefit plan? a. formal retirement plan that provides the...
What is the definition of a defined benefit plan? a. formal retirement plan that provides the participant with a fixed benefit upon retirement b. retirement plan that requires specific contributions by an employer to a retirement or savings fund established for the employee c. plan which allows employees to forgo specific benefits and receive the equivalent in increased pay d. plan in which employees may defer income up to a maximum amount allowed e. plan with an “escalator clause” that...
A cash balance plan and a traditional defined benefit plan share which of the following characteristics:
A cash balance plan and a traditional defined benefit plan share which of the following characteristics:
Which of the following statements is correct with respect to a defined contribution plan? Multiple Choice...
Which of the following statements is correct with respect to a defined contribution plan? Multiple Choice The payments made by the employer to fund a defined contribution pension plan create a pension fund asset on the balance sheet of the employer. The employer receives a tax deduction for amounts contributed to the pension plan trust and subsequent investment retums do not generate tax for the employer. The anticipated life span of the employees after retirement must be taken into consideration...
The interest cost included in the annual pension cost recorded by an employer sponsoring a defined benefit pension plan...
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The obligation for a defined contribution plan is calculated by a) discounting the benefit the employee...
The obligation for a defined contribution plan is calculated by a) discounting the benefit the employee will receive at retirement. b) add up contributions made plus interest earned less any benefits paid out. c) the cumulative contributions made to the pension plan. d) the amount the employer is obligated to contribute for the period.
Which of the following statements accurately describe the basic provisions of a target benefit plan? I....
Which of the following statements accurately describe the basic provisions of a target benefit plan? I. Participants bear the risk of investment results. II. The amount of the retirement benefit is specified in the plan, and the employer is required to provide a specific terminal benefit. III. The contributions are limited to the lesser of 100% of compensation or $54,000 (2017 limit). IV. Like other defined contribution plans, target benefit plans generally are more favorable for younger participants. Group of...
"In a defined benefit plan, pension expense is equal to the firm s cash contribution." TRUE...
"In a defined benefit plan, pension expense is equal to the firm s cash contribution." TRUE FALSE All of the following increase pension expense except: service cost. interest on the liability. amortization of prior service cost. all of these answers are correct.
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Which of the following statements is correct with respect to a defined contribution plan? Multiple Choice The payments made by the employer to fund a defined contribution pension plan create a pension fund asset on the balance sheet of the employer. The employer receives a tax deduction for amounts contributed to the pension plan trust and subsequent investment retums do not generate tax for the employer. The anticipated life span of the employees after retirement must be taken into consideration...
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