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?
A) individual retirement account (IRA) plan
B) 401(k) plan
C) Keogh plan
D) restricted private investment (RPI) plan

Question

Quizplus · Accepted Answer

Many firms offer 401(k) retirement plans. In addition to the benefit of tax-deferred investment and earnings, employers often match a portion of the employee's contribution as part of the firm's fringe benefits package.

As an Employee of Marshall Manufacturing, Sherry Has an Opportunity