Which retirement account is provided by employers and often features pre-tax contributions with potential employer matching?

• A. Pension
• B. 403(b)
• C. 401(k)
• D. Roth IRA

Answer: (C)

The main idea is an employer-sponsored retirement plan that lets you contribute pre-tax dollars and often includes a matching contribution from the employer. The plan that fits this description most widely is the 401(k). It’s commonly offered by private-sector employers, allows traditional pre-tax contributions that reduce your current taxable income, and many employers will match a portion of what you contribute, which can significantly boost your savings over time.

A pension works differently, typically providing a fixed monthly benefit funded by the employer rather than pre-tax employee contributions with a match. A Roth IRA is an individual account funded with after-tax money, with no employer matching. A 403(b) is similar to a 401(k) but is mainly available to employees of nonprofits and some government organizations. So the description points to the 401(k).