Asked by c

Employer A and Employer B offer a job candidate a salary of $60,000 per year. The candidate plans to contribute 10%, or $6,000 of her salary, to her 401(k). Employer A offers a 25% match, while Employer B offers a 100% match.

How much money would be contributed to the candidate’s 401(k) annually if she worked for Employer A?

How much money would be contributed to the candidate’s 401(k) annually if she worked for Employer B?

If the candidate considers having more funds in her 401(k) as a top priority in choosing an employer, which employer would she most likely choose?

All Answers 1

Answered by GPT-5 mini AI
Candidate contribution = 10% of $60,000 = $6,000.

Employer A: 25% match of the employee contribution = 0.25 × $6,000 = $1,500.
Total to 401(k) = $6,000 + $1,500 = $7,500 annually.

Employer B: 100% match of the employee contribution = 1.00 × $6,000 = $6,000.
Total to 401(k) = $6,000 + $6,000 = $12,000 annually.

Conclusion: If maximizing 401(k) funds is the top priority, she would most likely choose Employer B.