the graphic shows a sample 401k investment. based on the graphic, what advantage does this 401k have over…

the graphic shows a sample 401k investment. based on the graphic, what advantage does this 401k have over other types of investments? sample 401(k) investment annual contribution: $5,000 employer match: 50% employer contribution: $2,500 total contribution: $7,500 it encourages employees to contribute by offering an employer bonus. it ensures that employees who contribute will retire with more money. it guarantees employees a return on their investment because of a company match. it incentivizes employees to contribute by offering an employer match.

the graphic shows a sample 401k investment. based on the graphic, what advantage does this 401k have over other types of investments? sample 401(k) investment annual contribution: $5,000 employer match: 50% employer contribution: $2,500 total contribution: $7,500 it encourages employees to contribute by offering an employer bonus. it ensures that employees who contribute will retire with more money. it guarantees employees a return on their investment because of a company match. it incentivizes employees to contribute by offering an employer match.

Answer

Brief Explanations:

A 401(k) often has an employer - match feature. This means that for every dollar an employee contributes (up to a certain limit), the employer also contributes a certain amount. This acts as an incentive for employees to contribute to their 401(k) plans. It doesn't guarantee a return on investment as investment performance depends on market conditions, and it doesn't ensure retirement with more money as that also depends on investment returns. The employer - match is not an employer bonus in the traditional sense.

Answer:

It incentivizes employees to contribute by offering an employer match.