Final answer:
Employee contributions to a retirement plan, such as 401(k)s and 403(b)s, must immediately vest at 100%. This means that employees have full ownership of their contributions as soon as they are made. Thus, the correct option for the question presented is 'd. must immediately vest at 100%'.
Step-by-step explanation:
The question concerns employee contributions to a retirement plan. The retirement landscape has shifted from defined benefits plans to defined contribution plans such as 401(k)s and 403(b)s. In these plans, both employer and employee can make regular contributions to the employee's retirement account. Contributions made by employees in these plans are typically tax deferred, and the plans offer flexibility, as they are portable when an individual changes employers.
As for vesting, it refers to the percentage of ownership employees have over their employer's contributions to the plan. Vesting schedules vary by plan; some may offer immediate vesting at 100%, and others might have gradual vesting schedules. However, employee contributions are always 100% vested; they own their contributions outright.
Therefore, in regards to the question about whether employee contributions to a retirement plan must immediately vest at 50% or 100%, the correct option is 'd. must immediately vest at 100%'. This implies that employees have full ownership of their contributions right away, regardless of the type of retirement plan.