Which of the following accounts does ERISA cover?

By Investopedia Staff AAA
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. What is the difference between a fixed and variable annuity?

    Understand the difference between fixed, variable and indexed annuities, and read a brief summary of their respective risks ...
  2. What are the best ways to lower my taxable income?

    Paying taxes is an unavoidable obligation each year, but individuals and business owners can take advantage of various strategies ...
  3. How does the Canada Pension Plan (CPP) work, and what asset mix does it hold?

    Learn the difference between a chartered financial analyst and the Canadian pension plan. Explore Canadian retirement options ...
  4. What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase ...
RELATED TERMS
  1. Credentialing Liability

    Liabilities that a hospital or medical facility faces for the ...
  2. Counseling Liability

    Liabilities from the provision of counseling services.
  3. Bare Walls Coverage

    A type of insurance coverage that applies to communally used ...
  4. Contents Rate

    The premium required to insure the contents of a property rather ...
  5. Borderline Risk (Insurance)

    An insurance policy applicant that an insurance company has not ...
  6. Canine Liability Exclusion

    A homeowners policy endorsement that prevents the insurer from ...

You May Also Like

Related Articles
  1. Professionals

    Just Retired? No Better Time for a Second ...

  2. Professionals

    When Your Client's Retirement is Around ...

  3. Professionals

    A New Wake-up Call for Savers

  4. Insurance

    Finding The Best Health Insurance You ...

  5. Insurance

    Avoid The No-Health-Insurance Penalty ...

Trading Center