Evidence of insurability (is / is not) required in group insurance plans. In a defined contribution plan, the (contribution / benefit) is known in advance but the (contributions/benefits) vary. In a defined benefit plan, the (contribution/benefit) is known in advance but the (contributions / benefits) vary. Bob contributes to his traditional 401(k) plan at work. With this plan, distributions at retirement (are / are not) taxable, monthly contributions while Bob is still working (are/are not) deducted from his monthly income, and investment income accumulates (tax-deferred/ tax-free). . Distributions from a qualified plan before the age of 59 (are / are not) subject to a 10% penalty tax. -. An annuity grows (tax-deferred/tax-free) and (should / should not) be used as a good source of liquidity in a financial portfolio.