If you contribute $1,000 into your company's retirement saving program and your employer matches it with another $1,000,you will have instantly earned a 100% return on your investment,assuming the vesting period has been satisfied.

Question

Quizplus · Accepted Answer

The statement is true. When an employer matches an employee's contribution to a retirement savings program, the employee receives an instant return on their investment equal to the amount of the employer's contribution. In this case, the employee contributed $1,000 and the employer matched with another $1,000, resulting in a total investment of $2,000 and an instant return of 100%. However, the vesting period must be satisfied before the employee has full ownership of the employer's contribution.

If You Contribute $1,000 into Your Company's Retirement Saving Program