Which of the following are two types of defined contribution plans?

The correct identification of two types of defined contribution plans is rooted in the roles played by those managing the investment choices within the plan. Defined contribution plans are retirement savings plans where the amount of the employer's annual contribution is specified. The actual amount of money available at retirement depends on the investment performance of the contributions made.

In the context of defined contribution plans, "plan sponsor directed" refers to situations where the employer, or plan sponsor, makes investment decisions on behalf of employees, choosing investment options that participants must select from. On the other hand, "participant directed" means that employees have the control to choose their investments from the options provided in the plan. This terminology is commonly used to differentiate the roles and the level of control that participants have regarding their retirement savings.

The other options do not effectively describe recognized categories of defined contribution plans. For instance, referring to plans as "traditional and Roth" is more applicable to types of Individual Retirement Accounts (IRAs) rather than defined contribution plans like 401(k)s or 403(b)s. The distinction between government-directed and participant-directed does not align with standard terminology in the context of defined contribution plans. Lastly, "employee-directed and company-sponsored" mixes terms that do not accurately represent the governance of a