In which type of retirement plan is the benefit promised at an exact dollar amount often stated?

The correct response highlights the features of a defined benefit plan. In this type of retirement plan, the employer guarantees a specific benefit amount to the employee upon retirement. This benefit is often expressed as a specific dollar amount and is typically based on factors such as salary history and duration of employment.

Defined benefit plans are designed to provide a predictable retirement income, which assures the employee of a stable financial arrangement once they retire. The employer takes on the investment risk and is responsible for ensuring that sufficient funds are available to meet the promised benefits. This contrasts with defined contribution plans, where the benefits depend on the contributions made and the investment performance, without a guaranteed dollar amount at retirement.

Roth IRAs and self-directed plans also do not promise a specific benefit amount, as their payouts depend on individual contributions and investment choices made by the account holder, without employer guarantees or specified benefit structures. Consequently, the nature of a defined benefit plan is what distinguishes it as the correct answer, focusing on the certainty of benefits it provides to retirees.