Question

ABC Company would like to establish a retirement plan incorporating the following objectives:

A) Attract and retain employees.
B) The employer will make all contributions to the plan with company stock.
C) The plan must integrate with Social Security.
D) What type of retirement plan best suits ABC's objectives?

Answer 1

A defined contribution plan, such as a 401(k) or a 403(b), is the best retirement plan for ABC Company's objectives, as it helps attract and retain employees and can incorporate company stock and integrate with Social Security.

Step-by-step explanation:

The type of retirement plan that best suits ABC Company's objectives is a defined contribution plan, such as a 401(k) or a 403(b).

In a defined contribution plan, the employer contributes a fixed amount to the employee's retirement account on a regular basis (usually every paycheck). This helps attract and retain employees because it shows that the company is invested in their long-term financial security.

With a defined contribution plan, the employer can contribute company stock as part of the plan if it aligns with their goals. Additionally, these plans can be designed to integrate with Social Security, allowing employees to receive retirement benefits from both sources.