Which of the following is a characteristic of pension plans

Which of the following is a characteristic of pension plans that does not apply to profit sharing plans?

a. Separate accounts.

b. In-service withdrawals for select employees, plan permitting.

c. Limited investment in life insurance.

d. Mandatory funding.

Solution

option d. mandatory funding is correct

subject to other conditions, employer is not subject to mandatory funding of the profit sharing pension plan.

The amount of funding is at the discretion of the employer.