David is a 40-year-old employee at a large corporation. He c…
David is a 40-year-old employee at a large corporation. He contributes 6% of his salary to his employer’s retirement plan, and his employer matches 3% annually. His contributions accumulate in an investment account, and he bears the investment risk. Upon retirement, his benefits will be based on the accumulated contributions and investment earnings. What type of retirement plan does David participate in?