Danielle is a new graduate with limited savings and is willing to accept a longer vesting schedule in exchange for higher employer contributions. What would be the best retirement option for Danielle?
Answer
A
a pension plan with fixed monthly payouts during retirement
B
a 401(k) with 100 percent employer contribution matching up to 5 percent, a five-year cliff vesting schedule, and lower fees for early withdrawals
C
a 401(k) with 75 percent employer contribution matching up to 5 percent, a two-year cliff vesting schedule, and lower fees for early withdrawals
D
a 401(k) with 100 percent employer contribution matching up to 6 percent, a five-year cliff vesting schedule, and higher fees for early withdrawals