Question

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.

Consider 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?

Note to document references in APA format.

Answer 1

ANSWER

By considering benefit retirement plans and contribution plans the documentation of responsibilities of employer in administering is done as fallowes:

More risky plans

• In characterized advantage plan, the payouts are relied upon the income of the organization. To decide the payout, many customize variables will be thought of.
• In characterized commitment plan: the top measure of commitment 1.11 go into rethement record of representative.
• The characterized commitment retirement plan is increasingly dangerous for the business. 'Me characterized advantage retirement plan is progressively unsafe for the representative.

PLAN that Providing more resource for the employee

• Singular representative can get more from the characterized advantage plan as the payout is dictated by the customize elements and income of the organization.

Personal income tax considerations

• In characterized advantage plan, there is charge advantage for the commitment given by business as it were.
• In characterized commitment plan, there might be charge advantage for the commitment given by manager and worker.