An employer's matching contribution to an employee's 401(k) retirement plan is best descri

A) A guaranteed return on investment.

B) Free money that significantly boosts retirement savings.

C) A taxable benefit that reduces the employee's take-home pay.

D) A penalty for early withdrawal.

Explanation

An employer match is essentially free money contributed by your employer to your retirement account, often contingent on your own contributions. It immediately increases your retirement savings and is a key benefit of many 401(k) plans.

Practice More General Knowledge Questions

An employer's matching contribution to an employee's 401(k) retirement plan is best described as what?

Explanation