As an employee of New Hampshire Industries, Kathleen has an opportunity to invest pre-tax income in an employer-sponsored retirement plan. Her employer will contribute 50 cents for every dollar that Kathleen contributes to this fund. This is an example of a(n):
A) individual retirement account (IRA) plan.
B) 401(k) plan.
C) Keogh plan.
D) restricted private investment (RPI) plan.

Question

Quizplus · Accepted Answer

This is an example of a 401(k) plan, which is a type of employer-sponsored retirement plan that allows employees to contribute pre-tax income and often includes an employer matching contribution. The other options (IRA, Keogh, RPI) are not applicable to this scenario.

As an Employee of New Hampshire Industries, Kathleen Has an Opportunity