Question 7 • Mathematics for Data and Financial Literacy
Leora is a new graduate who just started her first full-time job at a private company. Her employer offers a 401(k) plan with a long vesting schedule but a generous employer match of 100% up to 6% of her salary. Given that Leora has limited savings, what would be the best course of action for her to maximize her retirement savings?
Answer
A
avoid contributing to the 401(k) and rely solely on personal savings
B
contribute as much as possible to the 401(k) to take full advantage of the employer match
C
contribute the minimum amount to the 401(k) and focus on building emergency savings
D
contribute to a personal investment account instead of the 401(k)