Question

leora is a new graduate who just started her first full - time job at a private company. her employer offers a 401(k) plan with a generous employer match of 100% up to 6% of her salary. given that leora has limited savings, what would be the best course of action for her to maximize her retirement savings? contribute as much as possible to the 401(k) to take full advantage of the employer match contribute the minimum amount to the 401(k) and focus on building emergency savings contribute to a personal investment account instead of the 401(k) avoid contributing to the 401(k) and rely solely on personal savings

Explanation:

To maximize retirement savings when an employer offers a 100% match up to 6% of salary in a 401(k) plan, it is best to contribute enough to get the full employer - match as it is essentially free money for retirement.

Answer:

contribute as much as possible to the 401(k) to take full advantage of the employer match