Question

A 401(k) plan

a.) May only be established by corporations.
b.) Requires employer contributions.
c.) Generally attaches to a profit-sharing or stock bonus plan.
d.) May no longer be made available to long-term part-time employees.

Answer 1

A 401(k) plan (c) generally attaches to a profit-sharing or stock bonus plan and allows employees to save for retirement with potential employer matching contributions.

Step-by-step explanation:

A 401(k) plan (c) generally attaches to a profit-sharing or stock bonus plan. It is a type of retirement savings plan that allows employees to contribute a portion of their salary into an investment account, where the funds can grow tax-free until withdrawal during retirement.

Employers may match employee contributions up to a certain percentage, providing additional funds for retirement. It is important to note that long-term part-time employees may no longer be eligible for a 401(k) plan (d).