(a)
To explain:
The two unique benefits of 401(k) retirement plan.
Introduction:
401(k) retirement plan refers to the contribution plan sponsored by the employer of a company. In this plan either both employer and employee can make the contribution or only employee can make the contributions.
(b)
To explain:
The reason of given benefits and
Introduction:
Time value of money
refers to the concept that explains that the value of money decreases with the increase in time due to external factors like inflation. It contains the valuation of present value of money at some discounted rate.(c)
To explain:
The thing that D should do to be “active participants”.
Introduction:
Active participant
refers to the person who has the eligibility to get the tax deduction or tax exemption in his tax return due to his contribution in retirement plan which is sponsored by his employer.(d)
To explain:
The concept of catch up provisions, the reason and the way of their use.
Introduction:
Catch up provision
refers to the provision that is related with the retirement plan and that says that a person aged more than 50 years can make more contributions than the specified limit in his retirement plan.Want to see the full answer?
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Personal Finance: Turning Money into Wealth, Student Value Edition, Plus MyLab Finance -- Access Card Package (7th Edition)
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