As an employee of Marshall Manufacturing, Sherry has an opportunity to invest pre-tax income in an employer-sponsored retirement plan. Her employer will contribute 50 cents for every dollar that Sherry contributes to this fund. What is this an example of?

Question

Quizplus · Accepted Answer

This is an example of a 401(k) plan, where employees can invest pre-tax income in a retirement plan sponsored by their employer. Marshall Manufacturing's contribution of 50 cents for every dollar contributed by Sherry is a common employer match feature of 401(k) plans.

As an Employee of Marshall Manufacturing, Sherry Has an Opportunity