Frequently Asked Question
Which of the following accounts does ERISA cover?
A. IRA
B. State employee pension plan
C. Corporate defined-benefit plan
D. Coverdell savings account
Answer: C
The correct answer is "c." ERISA covers most employer retirement plans, but public employee plans are exempt from coverage. "A" is not correct because the IRA is an individual plan, not an employer plan, while the Coverdell savings account is a college savings account, not a retirement plan.
B. State employee pension plan
C. Corporate defined-benefit plan
D. Coverdell savings account
Answer: C
The correct answer is "c." ERISA covers most employer retirement plans, but public employee plans are exempt from coverage. "A" is not correct because the IRA is an individual plan, not an employer plan, while the Coverdell savings account is a college savings account, not a retirement plan.
by
Investopedia Staff
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