Jaiden Hood

Mathematics

17 February, 18:31

Gretchen is responsible for explaining her company's retirement benefits to new employees. She explains that the company matches up to 3% of employee contributions to the company 401 (k) plan. After two years, these contributions become vested. Gretchen says that the employees should invest in the company 401 (k) when they start since it has all the same risks and benefits as investing in an IRA. Is Gretchen's description

accurate?

Select the best answer from the choices provided.

A. Yes; they both could lose money if investments perform poorly.

B. Yes, both could come up short if workers fail to invest enough.

C. No; only IRAs rely on a worker's individual investment choices.

D. No: workers would lose non-vested funds from 401 (k) plans if they left the company.