In the following table, choose the pension plan that matches the characteristics provided. Characteristic 401(k) Plan Cash Balance Plan Older employees who are changed into these plans are often given large amounts of money when the plan is opened to help them match returns younger employees will receive. This plan does not guarantee retirement funds on retirement. This plan allows employees to save through payroll deductions, which reduces taxable income. Contributions may be matched by the employer. The employer makes a yearly contribution into an employee's retirement saving account