ECONOMICS
TECHNOLOGY
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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mutual fund
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401(k)
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Roth IRA
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savings
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Detailed explanation-1: -A 401(k) Plan is a defined contribution plan that is a cash or deferred arrangement. Employees can elect to defer receiving a portion of their salary which is instead contributed on their behalf, before taxes, to the 401(k) plan. Sometimes the employer may match these contributions.
Detailed explanation-2: -A 401(k) plan is a tax-advantaged plan that offers a way to save for retirement. With a traditional 401(k) an employee contributes to the plan with pre-tax wages, meaning contributions are not considered taxable income. The 401(k) plan allows these contributions to grow tax-free until they’re withdrawn at retirement.
Detailed explanation-3: -The main difference between 401(k)s and IRAs is that employers offer 401(k)s, but individuals open IRAs on their own, through a broker or bank. IRAs typically offer more investment options, but 401(k)s allow higher annual contributions.
Detailed explanation-4: -401-k; pension plan; pension account; retirement plan; retirement savings plan; retirement savings account; retirement account; retirement program.
Detailed explanation-5: -Employment based Pension Plans. Government Retirement Plans. Public Provident Fund. Pradhan Mantri Vay Vandna Yojna (PMVVY) Senior Citizen Saving Scheme (SCSS) Insurance based Retirement Plans.