Question

part b

isabels company offers other programs and incentives to help employees with their savings and expenses. select three programs that are commonly sponsored by employers to encourage their employees to save.

529 education savings plan
dependent care fsa
emergency fund savings account
health fsa
individual retirement account (ira)
rainy-day fund savings account

Explanation:

Analyze the question requirements

The question asks to select three programs commonly sponsored by employers to encourage employees to save.

Evaluate each option

• 529 education savings plan: Many employers offer payroll deductions for 529 college savings plans as a benefit to help employees save for education.
• dependent care FSA: A Flexible Spending Account (FSA) is a tax-advantaged account sponsored by employers to help employees save on eligible dependent care expenses.
• emergency fund savings account: While employers encourage emergency savings, a dedicated "emergency fund savings account" is typically set up individually by the employee at their own bank, not a standard employer-sponsored benefit program.
• health FSA: A Health FSA is a standard employer-sponsored benefit allowing employees to save pre-tax dollars for medical expenses.
• individual retirement account (IRA): An IRA is, by definition, an "individual" account set up by a person independently of their employer (unlike a 401k).
• rainy-day fund savings account: Similar to emergency funds, this is a personal savings goal rather than a formal employer-sponsored benefit program.

Select the three correct programs

The three formal, tax-advantaged savings programs commonly sponsored and administered by employers are:

1. 529 education savings plan
2. dependent care FSA
3. health FSA

Answer:

• 529 education savings plan (Correct answer)
• dependent care FSA (Correct answer)
• emergency fund savings account
• health FSA (Correct answer)
• individual retirement account (IRA)
• rainy-day fund savings account