Discussion Question
Answer the bullet points below. Each bullet point needs to be addressed. Use in-text citations and cite references. Please make sure references are accessible and include the link to the webpage in the reference.
Prompt: Consider defined-benefit retirement plans and defined-contribution retirement plans and document the primary characteristics of each. Specifically, contrast the responsibilities of the employer in administering each plan.
Answer the following questions:
- Which plan is more risky for an employer?
- Which plan is more risky for an individual employee?
- Which provides the individual employee with more resources at the conclusion of employment?
- What are the personal income tax considerations for the individual employee once payments commence under each plan?
