Teresa just received a quarterly statement from the Vanguard Group,which shows earnings from investments using her pretax dollars.Teresa contributes a percentage of her salary to the plan and her company matches it.Teresa is participating in a(n)________.
A) pension plan
B) 401(k)
C) stock option agreement
D) ESOP
E) profit sharing plan

Question

Quizplus · Accepted Answer

The description of the investment plan matches that of a 401(k), which is an employer-sponsored retirement savings plan where employees can contribute a portion of their pre-tax income and employers may choose to match a portion of these contributions. None of the other choices fit the given description.

Teresa Just Received a Quarterly Statement from the Vanguard Group,which