ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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company plans that provide retirement income for their workers (401k)
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private retirement plan that allows people to save a certain amount of income per year tax-free. They pay taxes when money is taken out.
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private retirement account that allows people to save a certain amount of income per year. Money is taxed when deposited, but money taken out is tax-free.
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None of the above
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Detailed explanation-1: -A 401(k) plan is a qualified plan that includes a feature allowing an employee to elect to have the employer contribute a portion of the employee’s wages to an individual account under the plan. The underlying plan can be a profit-sharing, stock bonus, pre-ERISA money purchase pension, or a rural cooperative plan.
Detailed explanation-2: -A 401(k) is an employer-sponsored retirement plan, sometimes called a defined contribution plan (in contrast to a defined benefit pension plan). It allows employees to make pre-tax contributions to the plan, up to a specified amount each year.
Detailed explanation-3: -The Best 401(k) Plans of March 2023. ShareBuilder 401k. Merrill Edge 401(k) Plan. Employee Fiduciary 401(k) Plan. Vanguard 401(k) Plan. Fidelity Investments 401(k) Plan. ADP 401(k) Plan. Betterment for Business. More items •01-Mar-2023