Winslow Corporation has many long-term employees. The company has neve

Winslow Corporation has many long-term employees. The company has never had a pension plan. Recently, a new management team was hired.

The new president said he would like to start a pension plan through which he could reward the long-term service provided by many employees. Which of the following types of plans should Winslow Corporation adopt?
A) section 403(b) plan
B) section 401(k) plan
C) money-purchase plan
D) defined benefit plan

ANSWER

Answer: D