The best answer is A. Defined benefit plans are set up to fund a “defined benefit” at retirement age. To meet this “defined benefit” obligation, the contribution amounts are actuarially set and the distributions at retirement age are actuarially set as well to provide payments for the retiree’s life. In contrast, a defined contribution plan has the actual annual contribution amount made by the employer, employee, or both, up to the maximum amount specified by law. Types of defined contribution plans include 401(k) plans and money purchase pension plans. Contributions are made to an individual account for each participant and distributions at retirement age can only deplete the account value. With a defined contribution plan, the distributions will not necessarily continue for life.