8
AssignmentMultiple Choice

Employment and Education

Question 8 • * HSA 26-27 Economics

Why might an employee contribute to an employer's retirement plan that offers matching contributions?

Answer
A
to comply with mandatory regulations regarding retirement savings
B
to avoid penalties for not participating in the company’s benefits program
C
to ensure job security by demonstrating financial responsibility
D
to double the amount saved without increasing the employee’s contributions

Explanation

An employer match adds money to the retirement account based on the employee’s contribution. For example, if the employer matches each dollar the employee contributes, the employee’s savings can double without the employee putting in more money. The match is a benefit, not a mandatory regulation or a condition for keeping a job.

AI-written and checked against the verified answer.

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