Question

401(k)s

• are employer - provided
• and investing plans
• require employees to enroll in the plan and select a

amount they wish to withhold from their

• will pay out payments in accordance with the plan’s features and guidelines once the employee has reached the agreed - upon

options: retirement savings, deferral, retirement age, gross income

Explanation:

To solve this fill - in - the - blank about 401(k) plans, we analyze each blank:

First blank:

401(k) plans are mainly for saving money for retirement. Among the options, "retirement savings" is the most appropriate to describe what these employer - provided plans are. So the first blank should be filled with "retirement savings".

Second blank:

Employees in a 401(k) plan need to choose the amount they want to defer (set aside) from their income for the plan. So the second blank is "deferral".

Third blank:

The money that is withheld comes from the employee's income, and "gross income" is a common term for the total income before deductions. So the third blank is "gross income".

Fourth blank:

401(k) plans pay out when an employee reaches the retirement age. So the fourth blank is "retirement age".

Answer:

• First blank: retirement savings
• Second blank: deferral
• Third blank: gross income
• Fourth blank: retirement age