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CFA Level 2
Financial Reporting and Analysis

Defined Contribution Plan Identification

Very Easy Employee Compensation Defined Contribution Plans

An employee of a manufacturing company is enrolled in a retirement savings plan. This plan requires the company to contribute a specific amount to the employee's account based on their salary, and the contributions are typically made on a tax-deferred basis. This type of plan does not promise a specific amount upon retirement; rather, it allows employees to invest contributions. What type of retirement plan is the employee participating in?

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