What is the significance of the "401(k) match" offered by employers?

The 401(k) match offered by employers is significant because it represents additional retirement savings that employees receive on top of their own contributions. When an employer provides a match, they contribute a certain amount to the employee's retirement account based on the employee's own contributions, often up to a specific percentage of their salary. This effectively increases the amount saved for retirement without any additional cost to the employee, making it "found money."

Contributing to a 401(k) and receiving an employer match maximizes the potential for compound growth over time, significantly enhancing an employee's retirement nest egg. It serves as an incentive for employees to save for their future, encouraging them to take advantage of the plan, as the matched funds can grow and accumulate earnings, providing a valuable boost to overall retirement savings.

The other options do not accurately reflect the nature of 401(k) matches; they are not mandatory, can have withdrawal penalties, and do not offer guarantees of fixed returns.