One advantage of participating in a companysponsored retirement plan is:
A) you pay taxes on these contributions only during the year you contribute.
B) you are allowed to contribute only half as much as you would contribute to an IRA, so you get to keep more of your earnings.
C) time value of money does not apply.
D) companies will often participate in a matching process, where they will contribute a percentage of the amount you contribute.

Question

One advantage of participating in a company­sponsored retirement plan is:
A) you pay taxes on these contributions only during the year you contribute.
B) you are allowed to contribute only half as much as you would contribute to an IRA, so you get to keep more of your earnings.
C) time value of money does not apply.
D) companies will often participate in a matching process, where they will contribute a percentage of the amount you contribute.

Quizplus · Accepted Answer

Participating in a company-sponsored retirement plan can be beneficial because companies will often contribute a percentage of the amount you contribute, known as a matching program. This is essentially free money for your retirement savings, making it a very favorable option. The other answer choices are incorrect as they do not accurately describe the advantages of participating in a retirement plan.

One Advantage of Participating in a Company­sponsored Retirement Plan Is

One Advantage of Participating in a Companysponsored Retirement Plan Is