Alexis is choosing between a job in the National Parks Service, which offers a pension plan, and a forestry contracting job with

Question

kicyunya [14]

3 years ago

8

Alexis is choosing between a job in the National Parks Service, which offers a pension plan, and a forestry contracting job with

a 401(k) plan. Why would Alexis choose the 401(k) plan over the pension plan?

Business

1 answer:

liraira [26] · Answer 1 · 2022-06-27T22:42:17+03:00

One advantage of the 401(k) plan over the job with the pension plan is that a pension plan is dependent on the employer in a specific way in which if the employer announced bankruptcy, the company is no longer required to pay the pensions. A 401(k) gives more security to the employer as it protects them from this situation.