John carpenter works as a manager of a retail store. his employer has been setting money aside for him each month in the amount of 7 percent of his monthly earnings. what type of retirement plan does john have?

money-purchase pension plan

A money purchase plan is a type of defined-contribution plan that is similar to a profit-sharing plan, except that the contribution amounts are fixed rather than variable. Thus, employers are required to make annual contributions to each employee's account regardless of the company's profitability for the year.