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In which of the following qualified retirement plans are the employees responsible for the investment risk?...

In which of the following qualified retirement plans are the employees responsible for the investment risk?

1. Money Purchase Plan

2. Target Benefit Plans

3. Defined Benefit Plans

4. Cash Balance Plans


a. 1 and 3 only

b. 1 and 2 only

c. 2 and 3 only

d. 3 and 4 only

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Answer #1

b. 1 and 2 only

Target Benefit plan and money purchase plans are schemes in which employees responsible for the investment risk

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