Question 3 • FL-2102373-Personal Finance and Money Management Honors
A pension plan generally promises a retirement benefit set by the employer, which manages the plan and its investments. In a 401(k), employees choose how much to contribute and typically select investments from options offered by the plan, so it is more employee-controlled. Therefore, the accurate comparison is that pension plans are employer-controlled while 401(k) plans are employee-controlled.
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