A:

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.

RELATED FAQS
  1. Is a Simplified Employee Pension (SEP) part of the Employee Retirement Income Security ...

    Understand when a SEP plan falls under ERISA, how this act protects individual retirement savings and why the SEP is a popular ... Read Answer >>
  2. A parent would choose to set up a Coverdell Education Savings Account for a child ...

    A parent would choose to set up a Coverdell Education Savings Account for a child in order to save for college expenses AND: ... Read Answer >>
Related Articles
  1. Retirement

    4 Smart 529 Plan Alternatives to Consider

    Learn about some alternatives to the popular college-saving 529 plan that may also make sense, such as prepaid tuition plans and Coverdell accounts.
  2. Financial Advisor

    Why Coverdell ESAs May Trump 529 Plans

    Coverdell ESAs still trail 529 plans in popularity by a wide margin due to their low contribution limits. But these accounts can be a viable alternative.
  3. Retirement

    How We Can Help Close the Retirement Savings Gap

    The majority of Americans are not very confident about having enough for retirement.
  4. Financial Advisor

    The 401(k) and Qualified Plans Tutorial

    Learn about eligibility requirements, contributions and distribution rules for these retirement plans.
  5. Retirement

    New Rule Opens Door for State-Run Retirement Savings Plans

    The Department of Labor is enticing state governments to set up state-run retirement plans for private-sector workers, but some aren't happy with how.
  6. Personal Finance

    529 Plan or Coverdell? How to Choose College Savings Plans

    There are two options when it comes to tax-free college savings plans: a 529 plan or a Coverdell ESA. Here's how they compare.
  7. Retirement

    This Is Why Your Employer Should Offer a 401(k)

    Understand the unique benefits that come with a small business offering a retirement savings plan such as a 401(k) to current and future employees.
  8. Investing

    401(k) Lawsuits: How Employers Are Protecting Themselves

    Some companies are making it harder for employees to sue over retirement fund problems. Here is what you need to know about the trend.
RELATED TERMS
  1. Cash Balance Pension Plan

    A pension plan under which an employer credits a participant's ...
  2. SIMPLE IRA

    A retirement plan that can be used by most small businesses with ...
  3. Qualified Retirement Plan

    A plan that meets requirements of the Internal Revenue Code and ...
  4. Bank Trust Custodial Account

    A type of Individual Retirement Account (IRA) allowed by the ...
  5. Active Participant Status

    Active-participant status is a reference to an individual's participation ...
  6. Thrift Savings Plan - TSP

    A retirement savings plan created by the Federal Employee's Retirement ...
Hot Definitions
  1. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  2. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  3. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  4. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  5. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  6. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
Trading Center