JKL Company just converted its traditional defined-benefit plan ...

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JKL Company just converted its traditional defined-benefit plan to another type of plan.
 
  Under the plan, benefits are defined in terms of a hypothetical account balance, with retirement benefits dependent upon the value of the participant's account at retirement. Each year, employees receive an interest rate credit and a pay credit which is a specified percentage of compensation. This type of plan is called a
  A) section 401(k) plan.
  B) deposit-administration plan.
  C) cash-balance plan.
  D) trust fund plan.

Question 2

All the following statements concerning a Roth 401(k) plan are true EXCEPT
 
  A) After-tax dollars are used to fund the plan.
  B) Investment earnings accumulate on a tax-free basis.
  C) Employees at all income levels may contribute to the plan, but annual contributions are limited.
  D) Qualified distributions at retirement are fully taxable.

[Harbringer]

Answer to Question 1

Answer: C

Answer to Question 2

Answer: D

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TYSM

[vickybb89]

Gracias!