6
QuizMultiple Choice

Investment Strategies — Unit test

Question 6 • * HSA 26-27 Economics

What is one way employers get employees to participate in a 401k?

Answer
A
by requiring them to participate unless they opt out
B
by requiring them to opt in if they want to participate
C
by giving them an annual pay raise
D
by giving them a signing bonus when they participate

Explanation

Employers can increase 401(k) participation by automatically enrolling employees and letting them opt out if they do not want to contribute. This makes participation the default, so fewer employees miss out by forgetting to sign up. The correct choice is requiring participation unless employees opt out.

AI-written and checked against the verified answer.

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