What Is the Difference Between a Defined Benefit and a Defined

Multiple Choice

What is the difference between a defined benefit and a defined contribution retirement plan?

A) Defined benefit plans limit employee contributions while employed.
B) Defined contribution plans allow employees to contribute a set amount toward their retirement plan while employed.
C) Defined contribution plans allow employees to determine a specific amount of money they wish to receive upon retirement.
D) Defined benefit plans allow employees to set aside money on a tax-exempt basis.