Final answer:
Qualified retirement plans are designed to benefit both employers and employees, which is reflected in plans like 401(k)s and 403(b)s. Employers and employees both contribute to these plans, which are tax-deferred and portable, providing advantages to both parties involved.
Step-by-step explanation:
For a retirement plan to be classified as qualified, it must be established to benefit both employers and employees. This dual benefit is a fundamental aspect of qualified retirement plans, such as 401(k)s and 403(b)s, wherein employers contribute a fixed amount to the employee’s retirement account regularly, often matched by employee contributions. The funds in these accounts are typically invested in a range of options and grow tax-deferred until withdrawal. Furthermore, these accounts are portable, meaning that they can be transferred if an employee changes employers.
Therefore, the correct answer to the question is d. Both employers and employees. Qualified retirement plans are designed not only to attract and retain employees by offering retirement benefits but also to provide certain tax advantages to the employers that offer them. Additionally, pension plans are covered by the Pension Benefit Guaranty Corporation, which ensures at least partial pension benefits even if a company fails.