401(k) - Saving for Retirement

What is the primary purpose of a 401(k)?

• Buying a house

• Saving for retirement

• Paying for college

• Starting a business

What is a 401(k)?

• A type of health insurance

• A workplace retirement plan that lets you make annual contributions up to a certain limit and invest that money for the benefit of your later years.

• A student loan program

• A type of mortgage

• 22,500

• 21,000

• 23,000

• 20,000

If you are over age 50, how much higher is the 401(k) contribution limit?

• $7,500 higher

• $2,000 higher

• $10,000 higher

• $5,000 higher

Employers may match employee contribution—up to a certain percentage—but do they have to match at all?

• Yes, always

• No, they do not have to match at all

• Only for full-time employees

• Only for part-time employees

What is the maximum combined employer-employee contribution limit for a 401(k) in 2024?

What is the maximum combined employer-employee contribution limit for a 401(k) in 2025?

• $70,000

• $66,000

• $60,000

• $75,000

What is the 401(k) contribution limit for employees in 2025?

• $23,000

• $23,500

• $24,000

• $22,500

What is the combined 401(k) contribution limit for employee and employer in 2025?

• $69,000

• $70,000

• $71,000

• $68,000