Why have employers switched to defined?contribution plans instead of defined?benefits plans for most? companies?

A. Employers care deeply about what employees eventually receive from their plan.

B. The employer? doesn't want to do any bookkeeping for the retirement plan.

C. They remove the financial risk for future pension costs away from the company and pass it on to the employee.

D. All of the above are correct.

E. Only A and B are correct.

Jahwana works for a large corporation with a? 401(k) retirement plan. The company matches dollar for dollar the first? 5% of the? employee's salary contributed to the? 401(k). Jahwana currently earns? $40,000 in gross salary and she currently contributes? 15% of her salary into her? 401(k). How much money in dollars is the total contribution to her account every? year?

A. ?$2,000

B. ?$4,000

C. $6,000

D. $8,000

With a? ________, you, and usually your? employer, pay funds into your retirement plan.

A. deducted?benefit plan

B. contributory retirement plan

C. noncontributory retirement plan

D. none of the above

What advantage does the Roth IRA have over the traditional? IRA?

A. Contributions to a Roth IRA are tax deductible.

B. Early withdrawals from a Roth are subject to? penalities, so you? won't be tempted to dip into your investment.

C. Unlike the traditional? IRA, with a Roth you? don't pay taxes while your money is in the IRA.

D. With a Roth you take care of taxes ahead of time and end up with more money to spend at retirement.

Frank is considering a new job. However he is concerned about his pension fund. He knows that? ________ which is the requirement that he must work for his firm for a specified period of time prior to gaining ownership of the retirement contributions made by his employer has to be met first.

A. validating

B. tenuring

C. certifying

D. vesting

E. none of the above