SIE Exam Question 610: Answer and Explanation

Question: 610

Pete, an elderly business owner, is interested in establishing a retirement plan that will provide the greatest retirement benefit to himself. Which of the following plans should Pete select?

• A. Defined benefit plan
• B. Defined contribution plan
• C. Money purchase plan
• D. 401(k) plan

Correct Answer: A

Explanation:

A defined benefit plan favors older owner/employees and would provide the greatest retirement benefit to Pete.