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

A. A defined benefit plan is more profitable for employees than a defined contribution pension plan.

B. In a defined contribution pension plan, the firm invests contributions for the employees, who own the value of the funds in the plan. In a defined benefit plan, the firm promises employees a particular dollar benefit payment based on each employee's earnings and years of service.

C. In a defined benefit pension plan, the firm invests contributions for the employees, who own the value of the funds in the plan. In a defined contribution plan, the firm promises employees a particular dollar benefit payment based on each employee's earnings and years of service.

D. There are no differences between a defined contribution pension plan and a defined benefit plan.

What benefits do employees receive from saving for retirement using 401(k) plans?

A. Employees receive a higher interest rate on their contributions to 401(k) plans, thus increasing their retirement benefits.

B. Employees are not taxed on their contributions to 401(k) plans, or the earnings on those investments, until they are withdrawn during retirement.

C. Employees are not taxed on their contributions to 401(k) plans. This lowers employees' tax rates and increases their disposable income.

D. There are no benefits from saving for retirement using a 401(k) plan.