Most workers do not receive retirement pensions anymore, but instead may be offered a 401k plan. What is this?
A) A guaranteed savings plan set up for an employee by the employer that the employee can access upon retirement. The employer pays into the fund over each pay period.
B) Health care insurance coverage.
C) A contract for guaranteed employment over a long period of time, keeping a worker in a job (unpaid) even if the employee experiences long periods away from work.
D) The employer contributes to the fund based on matching from the employee's own contributions deducted from the paycheck. The employee is then responsible for managing the plan.

Question

Quizplus · Accepted Answer

A 401k plan is a retirement savings plan in which the employer contributes to the fund based on matching from the employee's own contributions deducted from the paycheck. The responsibility of managing the plan is on the employee.

Most Workers Do Not Receive Retirement Pensions Anymore, but Instead