Current Attempt in Progress

Identify which statements are accurate about defined benefit plans. Choose two.

The employee chooses how to invest their contributions and bears the risk of investment.

The employee's benefit is based on a formula which factors in the employee's years of service and salary.

Employer contributions to the plan are taxable in the year of contribution and any contributions made by the employee do

not reduce their current taxable salary.

Employees typically do not vest in the pension plan until they have worked for the employer for a stated number of years.