*Choose the correct answer for the choices in bold*

9. Employer-sponsored programs

Employer-Sponsored Retirement Programs

In addition to pension plans, employers of all sizes offer supplemental plans. These plans are often voluntary and help employees to not only increase the amount of funds being held for retirement but also enjoy attractive tax benefits.

A profit-sharing plan allows employees to participate in the earnings of their employer. This type of plan may be IRS qualified, making it eligible for the same tax treatment as other types of pension plans. Some companies may offer a (Voluntary / Contributory / Noncontributory) profit-sharing program that invests heavily in (A mix of fixed-interest products / Stocks and Bonds / Their own stocks) .

The salary reduction plan, (a 401(k) plan), gives employees the option to divert part of their salary to a company-sponsored, tax-sheltered savings account. In this way, the earnings diverted accumulate (Until retirement / Tax-free) . Because these contributions are made pretax, the amount necessary to fund a contribution is (Reduced / Increased) by the contribution times the (Age at plan inception / Individual's tax-rate / Years to retirement)